Alejandro Izuzquiza,
winner of the 12th Julio Castelo Matrán International Insurance Award
The work Public-private collaboration in the Spanish insurance system: the Insurance Compensation Consortium and the management of compensation in extraordinary risk insurance, by Alejandro Izuzquiza, has been awarded our Julio Castelo Matrán International Insurance Award. This work highlights the exceptional figure of the Consorcio de Compensación de Seguros, the Spanish Insurance Compensation Consortium.
“The Spanish insurance system has a strength that insurance systems in other countries lack. There are no other consortia or similar institutions abroad that are entrusted with so many functions in such diverse facets of the insurance business, all of which have such a significant social impact, as our Insurance Compensation Consortium”, explains author Alejandro Izuzquiza in his book.
What is the Spanish Insurance Compensation Consortium?
The Insurance Compensation Consortium (or CCS in Spanish) is an agency with a long history of serving the Spanish insurance sector. It falls under the Ministry of Economic Affairs and Digital Transformation, and its role is to protect citizens and businesses against risks that private insurers do not cover, such as natural disasters, terrorist attacks, and civil unrest, among other things.
But the Insurance Compensation Consortium not only provides compensation for damage caused by natural phenomena or events of political or social significance; it also manages compulsory car insurance, combined agricultural insurance, and the liquidation of insurance companies. This makes it an essential player in the stability of the insurance market.
Alejandro Izuzquiza, in his work, states that no other consortium or equivalent exists in other countries that covers such an extensive range of natural disaster risks; that also covers disasters resulting from human action, such as terrorist attacks or riots; that simultaneously addresses personal injury, property damage, and loss of profits; extends its coverage of personal injury to that caused by disasters occurring abroad; and offers compensation for damage to homes, offices, businesses, industries, and infrastructure, as well as automobiles. As he sums up in his text: “We are in the presence of the most comprehensive disaster coverage system (legally referred to as extraordinary risks).”
Thanks to this body, Spain has a unique coverage system at the European level, which provides security to not only citizens but also the insurance market itself.
The figure of Alejandro Izuzquiza in the insurance sector
Alejandro Izuzquiza is an iconic figure in the Spanish insurance sector and played a crucial role as Director of Operations at the Insurance Compensation Consortium (CCS). In this position, he made a significant contribution to policy and procedure development that has strengthened Spain’s insurance industry. His ability to adapt to change and manage complex situations has been fundamental to the modernization and adaptation of the CCS to new economic and social realities. Throughout his long professional life, he has earned a glowing reputation, not only for his outstanding career, but also for his human qualities.
After a long and successful working life, Izuzquiza retired on March 4, 2024, expressing his desire to enjoy his free time with his family.
The judging panel praised his work for highlighting the fundamental role played by the Insurance Compensation Consortium in the event of major disasters and the enormous importance of public-private collaboration, as demonstrated by the floods in Valencia during the DANA storm at the end of October 2024. In addition, they did not want to miss the opportunity to pay a well-deserved tribute to his magnificent professional career.
How is disaster compensation managed?
Access to the protection of the Insurance Compensation Consortium (CCS) is simple: all you need is private insurance that includes the corresponding premium. That small premium, almost imperceptible when we take out an insurance policy, is the key that opens the door to being covered in the event of a disaster.
When a calamity strikes, the procedure is clear and efficient: the insured party reports the incident and a team of specialized experts assesses the damage. From that point on, the compensation process is activated, designed to provide a rapid and effective response.
The compensation is financed by the collective efforts of millions of policyholders with home, car, business, and industrial insurance. It is a collective mechanism that ensures that, when tragedy strikes, no one is left out in the cold.
Impact of the 2024 DANA on the Spanish insurance system
The 2024 DANA storm was an extreme test for the Spanish insurance system. In addition to claiming 227 lives, the material devastation was terrible: wrecked homes, vehicles rendered unusable, destroyed farms, and paralyzed businesses were all left in the wake of the floods.
The volume of claims was overwhelming: 243,000 applications, a true measure of the economic impact of the catastrophe. In response, the CCS had to increase its staff fifteenfold, an effort that also reflects the magnitude of the challenge. In addition, exceptional measures were rolled out, including the activation of a Special Operating Protocol that enabled private insurance companies to assist in managing claims.
Despite having to face a disaster comparable only to the historic floods in Bilbao in 1983 in terms of its impact on the collective consciousness, the Spanish insurance system once again demonstrated its resilience.
The role of the Insurance Compensation Consortium in disasters like the DANA storm
In the event of any natural disaster, such as the DANA storm that hit Valencia in 2024, the CCS becomes the main guarantor of recovery. It intervenes immediately: it covers the damage, supports the people affected, and provides the cushion that allows them to start again.
Most importantly, no official declaration of a disaster area is required for the CCS to act. If the property is insured, for example, a home, a car, or a business, the cover is automatic. This guarantee, in combination with coordination with private insurers, makes the Consortium the bedrock of restored confidence and stability for the affected population.
The value of the Spanish insurance model in the face of major risks
The Spanish natural disaster coverage model is recognized around the world. Its universal nature, financial balance, and effectiveness have made it a unique benchmark. However, far from resting on its laurels, the insurance sector knows that it must continue to forge ahead.
The future lies in the digitization of processes, the interoperability of systems, improved communication with the public, and the use of artificial intelligence to anticipate risk patterns. The model is already sound, but it seeks to become more streamlined and accessible, and to be better prepared for the challenges of the future.