Functions of the Consorcio in Combined Agricultural Insurance

The Consorcio de Compensación de Seguros has important functions:

  • It participates in the co-insurance (which groups all insurance entities that cover the SAC together), currently having a 10% share of the risk. This function has continued with no interruption since 1985.
  • It is the obligatory reinsurer of the SAC under the terms established by the Ministry of Economy and Competitiveness.

    Given that the insurance covers different lines of risk, it performs in different ways and the reinsurance offers three different types of cover labelled as "viable", "experimental" and " expenses arising from the withdrawal and destruction of animals".

  • The resources required to carry out its reinsurance function are obtained through surcharges on premiums. These surcharges are differentiated in groups according to the type of insurance in question and the level of risk. If, as a consequence of managing these resources there is a profit, these are passed on to the stabilisation reserve, the purpose of which is to cover future losses. This reserve has a special fiscal nature and limits that are established on a regular basis.
  • The third function is to control the adjustment of losses, which guarantees a more efficient compliance with the reinsurance function.