Presentation

Law 87/1978, establishes the current system for Combined Agricultural Insurances. The Regulation that applies to it was published in the following year and, in 1980, the first Annual Combined Agricultural Insurance Plan was approved.

It is a policy that is voluntarily subscribed to by farmers although, should they opt for it, it must apply to all of the same type of production that they possess.

The cover of the risks is entrusted to insurance entities that group together and form a "pool": The Agrupación de Entidades Aseguradoras de Seguros Agrarios Combinados S.A. (Agroseguro) which runs the system.

The State has a strong participation in the system: it supports, controls and promotes it and, on an annual basis, it established the productions and the risks that must be covered. Since its inception, The Combined Agricultural Insurance has become an important instrument of agricultural organisation.

Through their representative organisms, the insured parties have developed an important role.

The principle of solidarity, - a basis element in insurance – is especially relevant in this activity.

The different covers that are offered, and the high degree of risk that is taken on, make it necessary to guarantee the system through public reinsurance, thus ensuring its correct functioning and continuity.

Since it was created, the Combined Agricultural Insurance system has gradually developed and its penetration in the market is ever increasing. At the same time, improvements have been introduced that have brought about a general reduction in costs to the insured, and have also helped to adapt the insurance to the needs of the agriculturists.

Both as a co-insurer and as the reinsurer of the system, the Consorcio de Compensación de Seguros has had an important role since the combined Agricultural Insurance was created. At present it participates as a co-insurer with a 10% share, although reinsurance continues to be its fundamental mission.