the spanish model for agricultural catastrophe risk management december 8 - 9, 2005, istanbul
TRANSCRIPT
THE SPANISH MODEL FOR
AGRICULTURAL CATASTROPHE
RISK MANAGEMENT
December 8 - 9, 2005, Istanbul
ESPAÑA
AGROSEGUROAGROSEGURO
REINSURANCEREINSURANCE
PUBLIC C.C.S.PUBLIC C.C.S. PRIVATEPRIVATE
INSURANCEINSURANCE
PLAYERS IN THE SPANISH SYSTEM PLAYERS IN THE SPANISH SYSTEM OF AGRICULTURAL INSURANCEOF AGRICULTURAL INSURANCE
PLAYERS IN THE SPANISH SYSTEM PLAYERS IN THE SPANISH SYSTEM OF AGRICULTURAL INSURANCEOF AGRICULTURAL INSURANCE
MULTI-PERIL CROP INSURANCE SYSTEM (M.C.I.)
V E R S U S
NATIONAL BUDGET
SYSTEM ADVANTAGES (I)
FOR THE STATE: - Cost is known in advance
- Yearly endowment to subsidize premiums
- Instrument for agricultural policy planning
FOR THE FARMER: - Charged for only a part of the price - Capacity to decide what to insure and
what not to
SYSTEM ADVANTAGES (II)
FOR THE INSURER: Contribution to this insurance line,
which is also backed by reinsurance
systems, that allows losses to be kept
at an acceptable level for the private
insurance companies
FINANCING SYSTEM
YEARSTATE AND
AUTONOMOUS REGIONS
FARMERS
2000
2001
2002
2003
2004
178.156.755,65
187.356.306,58
271.021.691,78
289.561.196,66
288.168.700,78
172.962.723,59
168.120.344,15
195.326.177,69
214.079.842,86
225.493.299,73
(IN EUROS)
I N S T I T U T I O N S
AGRICULTURE MINISTRYENESA
INSUREDFARMERS
AGROSEGURO
C.C.S.
INTERNATIONAL REINSURANCE
STATE
PROPOSES, TOGETHER WITH DGSFP, THE CENTRAL- GOVERNMENT SUBSIDIES ON PREMIUMSPROPOSES, TOGETHER WITH DGSFP, THE CENTRAL- GOVERNMENT SUBSIDIES ON PREMIUMS
COLLABORATES WITH AUTONOMOUS REGIONS ON AGRICULTURAL INSURANCE ISSUESCOLLABORATES WITH AUTONOMOUS REGIONS ON AGRICULTURAL INSURANCE ISSUES
M. AGRICULTURE – ENESA – FUNCTIONS:M. AGRICULTURE – ENESA – FUNCTIONS:
DRAWS UP THE ANNUAL PLAN AND SIGNS AN AGREEMENT FOR ITS IMPLEMENTATION WITH AGROSEGURODRAWS UP THE ANNUAL PLAN AND SIGNS AN AGREEMENT FOR ITS IMPLEMENTATION WITH AGROSEGURO
PROPOSES TO MINISTRY OF AGRICULTURE, FISHERIES AND FOOD: EXCLUSION CONDITIONS, YIELDS, PRICES...PROPOSES TO MINISTRY OF AGRICULTURE, FISHERIES AND FOOD: EXCLUSION CONDITIONS, YIELDS, PRICES...
OTHERS: SPREADING, EQUITY ARBITRATION, OFFICIAL ADJUSTMENT RULES...OTHERS: SPREADING, EQUITY ARBITRATION, OFFICIAL ADJUSTMENT RULES...
ENESA. Subsidy on premiumsENESA. Subsidy on premiums
By tiers: Base; Collective contracting; Additional (all three are mutually compatible)
By tiers: Base; Collective contracting; Additional (all three are mutually compatible)
Annual Plan: sets the percentages byJoint Order from Ministries of Economy and Finance and M.A.F.F.
Annual Plan: sets the percentages byJoint Order from Ministries of Economy and Finance and M.A.F.F.
Agricultural policy planning instrumentAgricultural policy planning instrument
The insurance policy is considered as the request for the subsidyThe insurance policy is considered as the request for the subsidy
The policy-holder pays: insurance cost - subsidiesThe policy-holder pays: insurance cost - subsidies
The budget for subsidies is limited The budget for subsidies is limited
ENESA SUBSIDYON ANNUAL PLAN 2006
239,87 million Euros
1 Million Euros = € 1,000,000.00
CC.AA.: CC.AA.: 4 members 4 members (rotating)(rotating)
CC.AA.: CC.AA.: 4 members 4 members (rotating)(rotating)
ENESA: General Committee detailsENESA: General Committee details
President of ENESA: President of ENESA: ChairpersonChairpersonGeneral Manager of ENESA: General Manager of ENESA: Vice-chairperson Vice-chairperson President of ENESA: President of ENESA: ChairpersonChairpersonGeneral Manager of ENESA: General Manager of ENESA: Vice-chairperson Vice-chairperson
Agricultural Agricultural Unions:Unions:
COAG - ASAJACOAG - ASAJAUPA - CCAEUPA - CCAE
Agricultural Agricultural Unions:Unions:
COAG - ASAJACOAG - ASAJAUPA - CCAEUPA - CCAE
D.G.S.F.P. y C.C.S.D.G.S.F.P. y C.C.S.Ministry of Economy and Ministry of Economy and
FinanceFinance
D.G.S.F.P. y C.C.S.D.G.S.F.P. y C.C.S.Ministry of Economy and Ministry of Economy and
FinanceFinance
M.A.P.A.: M.A.P.A.: 2 members2 membersM.A.P.A.: M.A.P.A.: 2 members2 members
Agroseguro: Agroseguro: 1 member1 memberAgroseguro: Agroseguro: 1 member1 member
Public Prosecutor Public Prosecutor ((without vote)without vote)
Public Prosecutor Public Prosecutor ((without vote)without vote)
SecretarySecretarySecretarySecretary
Guests: maximum Guests: maximum three (three (optional)optional)
Guests: maximum Guests: maximum three (three (optional)optional)
I N S T I T U T I O N S
AGRICUL. MINISTRYENESA
INSUREDFARMERS
INSUREDFARMERS
INSURANCE POLICY
INDIVIDUAL or COLLECTIVE
DIFFERENT RATESOF SUBSIDIES
Year 2001 2002 2003 2004
Produce Insurable
Area
Insured
Area
Insurable
Area
Insured
Area
Insurable
Area
Insured
Area
Insurable
Area
Insured
Area
Table Olive
Cotton
Rice
Winter Cereals
Spring Cereals
Citric fruit
Sunflower
Pulses
Banana
Tobacco
Table Grapes
Wine Grapes
Almond
Khaki
Cherry
Vegetables
Winter Cereals (all-risk)
Pulses (all-risk)
Beet sugar
Olive Yields
Apricot
Plum
Fruit farms
Apple
Peach
Pear
6.780.200
315.900
887.600
12.023.900
5.000.600
5.537.500
870.800
302.700
400.200
42.300
342.400
4.768.900
83.024
----
98.400
10.497.100
28.644.544
258.720
885.111
6.780.200
159.400
143.400
1.952.582
900.400
1.030.800
719.500
161.288
67.401
611.329
4.963.063
1.276.516
2.141.902
126.406
41.766
400.200
37.114
154.207
2.009.962
8.078
----
25.218
2.693.070
7.499.380
29.430
83.223
99.641
129.773
81.786
110.074
453.751
769.444
435.872
4.278.500
300.000
815.700
16.295.000
4.496.800
5.750.000
757.200
485.200
501.681
41.746
331.800
5.542.700
185.355
41.000
114.900
10.363.900
37.098.054
323.612
1.289.422
4.278.500
119.200
186.500
2.601.900
626.300
1.247.400
603.200
109.990
57.514
602.448
5.512.955
976.692
2.440.085
82.445
52.473
501.681
38.533
146.205
1.942.397
7.614
31.419
27.018
2.130.882
7.487.512
25.068
93.300
75.501
109.529
76.243
262.386
337.266
770.361
384.856
6.858.500
289.700
855.000
16.133.900
4.330.000
6.261.800
769.300
533.200
496.220
42.300
315.400
6.165.000
185.355
53.064
95.400
10.423.900
33.981.533
318.272
570.325
6.858.500
142.300
196.400
2.829.200
741.500
1.248.800
681.800
178.777
77.811
656.749
5.991.363
1.041.299
2.731.873
72.617
59.497
496.220
37.263
146.781
2.074.840
7.707
37.118
26.075
2.487.773
5.957.517
20.860
50.135
75.740
88.354
65.608
429.605
355.047
769.945
379.790
5.016.100
342.900
912.000
19.005.000
4.705.900
6.119.100
803.000
588.800
396.500
40.978
331.600
6.749.000
160.184
44.200
75.000
11.474.000
36.770.900
319.439
717.602
5.016.100
125.700
178.700
2.648.248
603.000
973.100
659.900
171.784
74.400
667.855
6.996.123
1.074.101
2.610.946
65.992
70.791
396.500
38.197
132.865
2.161.618
11.613
32.897
22.858
3.389.477
5.996.404
21.216
46.778
43.004
78.635
55.510
529.635
287.906
770.977
369.499
INSURABLE AND INSURED AREAS (hectares)
Year 2001 2002 2003 2004
Lines Insurable
livestock
Insured
livestock
Insurable
livestock
Insured
livestock
Insurable
livestock
Insured
livestock
Insurable
livestock
Insured
livestock
Cattle, Factory farming (Young Animals)
Cattle, Breeding
Fishfarming: gilthead bream, sea-bass and turbot (in metric tons)
Bovine Spongiform Encephalopathy
Sheep and goats
Expenses arising from the inceneration of dead animals (Bovine)
Expenses arising from the inceneration of dead animals (Non Bovine)
4.611.220
1.215.200
15.732
4.611.200
27.415.000
563.794
----
909.349
99.658
8.065
611.516
724.131
155.119
----
4.611.220
1.215.200
15.732
4.611.200
27.415.000
5.711.307
58.510.918
1.037.024
72.084
12.578
816.726
1.298.635
5.290.429
11.774.102
4.611.220
1.215.200
19.000
4.611.220
27.415.000
5.711.307
73.452.143
1.053.834
69.064
13.700
764.117
1.656.565
5.369.927
43.439.404
4.730.472
1.221.920
22.800
4.730.472
26.860.000
6.359.482
129.973.496
1.056.295
64.426
13.183
583.558
2.250.190
5.404.722
69.900.335
INSURABLE AND INSURED LIVESTOCK
EXPECTED REAL PRODUCTIONEXPECTED REAL PRODUCTION
THE OUTPUT THAT THE FARMER WOULD HAVE OBTAINED IF THE EVENT COVERED
BY THE INSURANCE WOULD HAVE NOT HAPPENED
THE OUTPUT THAT THE FARMER WOULD HAVE OBTAINED IF THE EVENT COVERED
BY THE INSURANCE WOULD HAVE NOT HAPPENED
INSURANCE OBJECTINSURANCE OBJECT
PRICES FOR INSURANCE PURPOSES:
-- Set by ENESA
-- Data collected by ENESA from Autonomous Regions
-- Principle of caution
(Agricultural claims: costs of harvesting and transport are deducted)
PRICES FOR INSURANCE PURPOSES:
-- Set by ENESA
-- Data collected by ENESA from Autonomous Regions
-- Principle of caution
(Agricultural claims: costs of harvesting and transport are deducted)
Y E A R 2005 (*) 2004 2003 2002 2001 Number of POLICIES
395.089 465.290 440.331 426.657 315.931
Number of CLAIMS
Agricultural
Livestock
108.789
609.858
82.249
651.858
73.423
494.230
103.950
329.820
103.179
95.494
POLICIES AND CLAIMS
I N S U R E D F A R M E R S
(*) Forescast 30 november 2005
TYPES OF INSURED RISKS
M.C.I. INSURED PRODUCEM.C.I. INSURED PRODUCE
Orange, apple, avocado, banana...
Sugars (Cane, beet),Textiles (Cotton, flax...)Oleaginous (Sunflowers, soya, rapeseeds), Tobacco, hops...
AgriculturalAgriculturalAgriculturalAgricultural
Livestock, fishfarming and beekeepingLivestock, fishfarming and beekeepingLivestock, fishfarming and beekeepingLivestock, fishfarming and beekeeping
Cattle, sheep, goats and fish (gilthead bream, sea-bass, turbot)
Cereals and pulses
Industrial
Market garden produce and flowers
Citrus and fruits
Olive, grapes and nuts
Others
Wheat, corn, sorghum, rice...
ForestsForestsForestsForests
AgriculturalAgriculturalAgriculturalAgricultural
LivestockLivestockBeekeepingBeekeepingLivestockLivestock
BeekeepingBeekeepingAccidents and diseasesAccidents and diseases
OthersOthers
FishfarmingFishfarmingFishfarmingFishfarmingOthersOthers
Gales, red tides, oil spillGales, red tides, oil spill
M.C.I. INSURED RISKSM.C.I. INSURED RISKSDroughtDroughtFrostFrostHail + fireHail + fire
Wind and rainWind and rain
High temperatures and dry airHigh temperatures and dry air
Plages and diseasesPlages and diseases
Others: Pixat (peel desease), siroco,Withering…Others: Pixat (peel desease), siroco,Withering…
FloodFlood
ForestsForestsForestsForests FireFire
I N S T I T U T I O N S
AGRICUL. MINISTRY
ENESA INSUREDFARMERS
AGROSEGURO
TO TAKE RISKS AND MAKE MANAGEMENT COSTS
CHEAPER, THERE DOES EXIST APOOL OF INSURES:
AGROSEGURO S.A.
AgroseguroAgroseguro
LTD. COMPANY THAT ON BEHALF OF THE
INSURANCE COMPANIES (SHARE HOLDERS)
MANAGES AGRICULTURAL INSURANCE IN SPAIN
LTD. COMPANY THAT ON BEHALF OF THE
INSURANCE COMPANIES (SHARE HOLDERS)
MANAGES AGRICULTURAL INSURANCE IN SPAIN
Coinsurance Table. Plan 2005CODE INSURANCE ENTITIES
C-38 CAHISPA, SOCIEDAD ANÓNIMA DE SEGUROS GENERALESC-110 COMPAÑÍA ASEGURADORA BANESTO SEGUROS, S.A.C-161 DKV SEGUROS Y REASEGUROS S.A. ESPAÑOLAM-134 FIATC, MUTUA DE SEGUROS Y REASEGUROS A PRIMA FIJAC-89 GES, SEGUROS Y REASEGUROSC-72 LA ESTRELLA, SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROSC-121 METRÓPOLIS, S.A. COMPAÑÍA NACIONAL DE SEGUROS Y REASEGUROSM-107 MUSSAP, MUTUALIDAD DE SEGUROS GENERALES A PRIMA FIJAM-336 MUTUA CATALANA DE SEGUROS Y REASEGUROS A PRIMA FIJAC-133 OCASO, S.A. COMPAÑÍA ANÓNIMA DE SEGUROS Y REASEGUROSC-37 SANTANDER CENTRAL HISPANO, COMPAÑÍA ASEGURADORA, S.A.M-191 SOLISS, MUTUALIDAD DE SEGUROS Y REASEGUROS A PRIMA FIJAC-120 VICTORIA MERIDIONAL, COMPAÑÍA ANÓNIMA DE SEGUROS Y REASEGUROS, S.A.C-723 WINTERTHUR SEGUROS GENERALES, SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROSC-174 SANTA LUCÍA, S.A. COMPAÑÍA DE SEGUROSM-67 MUTUA GENERAL DE SEGUROS, SOCIEDAD MUTUA A PRIMA FIJA DE SEGUROSC-502 BBVASEGUROS, S.A. DE SEGUROS Y REASEGUROSM-31 MAPFRE, MUTUALIDAD DE SEGUROS Y REASEGUROS A PRIMA FIJAC-468 SEGUROS CATALANA OCCIDENTE, S.A. DE SEGUROS Y REASEGUROSC-112 AXA AURORA IBÉRICA SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROS.M-124 MUTUALIDAD ARROCERA DE SEGUROS A PRIMA FIJAC-157 BANCO VITALICIO DE ESPAÑA, COMPAÑÍA ANÓNIMA DE SEGUROS Y REASEGUROSC-715 SABADELL ASEGURADORA, COMPAÑÍA DE SEGUROS Y REASEGUROS, SOCIEDAD ANÓNIMAC-21 PREVISIÓN ESPAÑOLA, SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROSC-58 MAPFRE SEGUROS GENERALES, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.C-109 CAJA NAVARRA DE SEGUROS, SOCIEDAD MUTUA DE SEGUROS A PRIMA FIJAM-14 ALLIANZ COMPAÑÍA DE SEGUROS Y REASEGUROS S.A.C-599 UNIÓN DEL DUERO, COMPAÑÍA DE SEGUROS GENERALES, S.A.C-652 CEP D´ASSURANCES GENERALS, S.A.C-517 GROOUPAMA PLUS ULTRA SEGUROS Y REASEGUROS, S.A.C-31 CAJA DE SEGUROS REUNIDOS, COMPAÑÍA DE SEGUROS Y REASEGUROS (CASER)M-373 AGROMUTUA-MAVDA, SOCIEDAD MUTUA DE SEGUROS A PRIMA FIJAM-98 MUTRAL, MUTUA RURAL DE SEGUROS A PRIMA FIJAO.P.6 CONSORCIO DE COMPENSACIÓN DE SEGUROSC-616 SEGUROS GENERALES RURAL DE SEGUROS Y REASEGUROS, S.A.C-755 MAPFRE AGROPECUARIA, COMPAÑÍA INTERNACIONAL DE SEGUROS Y REASEGUROS
TOTAL
36
M.C.I. 2005DISTRIBUTION OF INSURANCE ENTITIES
ACCORDING TO COINSURANCE PARTICIPATION
234
3
3
2C.C.S.
Menores del 1%De 1,1 a 2,5%De 2,6 a 5 %De 5,1 a 12,4 %C.C.S. 12,5%Mayores 12,5
INSURANCE MANAGEMENTINSURANCE MANAGEMENT11
REINSURANCE MANAGEMENTREINSURANCE MANAGEMENT22
AGROSEGURO. FUNCTIONSAGROSEGURO. FUNCTIONSAGROSEGURO. FUNCTIONSAGROSEGURO. FUNCTIONS
SUBSIDIES AND OTHERS FUNCTIONSSUBSIDIES AND OTHERS FUNCTIONS33
PROCESSING AND CONTROLLING OF INSURANCE POLICIESPROCESSING AND CONTROLLING OF INSURANCE POLICIES
ISSUING AND COLLECTING MANAGEMENT OF PREMIUM RECEIPTS ISSUING AND COLLECTING MANAGEMENT OF PREMIUM RECEIPTS
- RECEIVING, PROCESSING AND CONTROLLING OF CLAIMS- ADJUSTMENT OF LOSSES- SETTLEMENT AND PAYMENT OF CLAIMS ON BEHALF OF THE COINSURANCE COMPANIES
- RECEIVING, PROCESSING AND CONTROLLING OF CLAIMS- ADJUSTMENT OF LOSSES- SETTLEMENT AND PAYMENT OF CLAIMS ON BEHALF OF THE COINSURANCE COMPANIES
STATISTIC STUDIES AND ACTUARIAL RESEARCH (PRICING)STATISTIC STUDIES AND ACTUARIAL RESEARCH (PRICING)
AGROSEGURO. AGROSEGURO. INSURANCE MANAGEMENTINSURANCE MANAGEMENT
AGROSEGURO. AGROSEGURO. INSURANCE MANAGEMENTINSURANCE MANAGEMENT
11
COLLECTING OF REINSURANCE SURCHARGES IN FAVOR OF C.C.S. AND ITS PAYMENT TO
C.C.S.
COLLECTING OF REINSURANCE SURCHARGES IN FAVOR OF C.C.S. AND ITS PAYMENT TO
C.C.S.
MANAGEMENT OF THE REINSURANCE PORTION NOT TAKEN BY THE C.C.S.
MANAGEMENT OF THE REINSURANCE PORTION NOT TAKEN BY THE C.C.S.
AGROSEGURO.AGROSEGURO.REINSURANCE MANAGEMENTREINSURANCE MANAGEMENT
AGROSEGURO.AGROSEGURO.REINSURANCE MANAGEMENTREINSURANCE MANAGEMENT22
RECEIVING OF SUBSIDIES FROM ENESA AND AUTONOMOUS REGIONS
RECEIVING OF SUBSIDIES FROM ENESA AND AUTONOMOUS REGIONS
OTHER FARMING STUDIES COMMISSIONED BY THE PUBLIC ADMINISTRATIONS
OTHER FARMING STUDIES COMMISSIONED BY THE PUBLIC ADMINISTRATIONS
AGROSEGURO. SUBSIDIES AND OTHERSAGROSEGURO. SUBSIDIES AND OTHERSAGROSEGURO. SUBSIDIES AND OTHERSAGROSEGURO. SUBSIDIES AND OTHERS33
Y E A R 2005 2004 2003 2002 2001 PREMIUMS Viable
Experimental162,9
316,6
174,2
263,8
161,0
247,0
149,4
207,9
138,8
134,6
CLAIMS
Viable
Experimental
168,9
440,0
118,5
267,9
106,6
165,2
149,1
196,3
179,7
114,6
% CLAIMS / PREM.
Viable
Experimental
103,7%
139 %
68%
101,6%
66,2%
66,9%
99,8%
94,4 %
129,5 %
85,1 %
T O T A L 127 % 88,2% 66,6% 96,7% 107,6%
PREMIUMS AND CLAIMS
A G R O S E G U R O (millon Euros)
1 Million Euros = € 1,000,000.00
Forecast November 2005
I N S T I T U T I O N S
AGRICUL. MINISTRY
ENESA INSUREDFARMERS
AGROSEGURO
CONSORCIOCOMP. SEGUROS
• Public Business Institution
• Legal personality on its own and full capacity to act
• Its activity is subject to laws governing private companies
CCS LEGAL FRAMEWORK:
• Holds its own assets, independent of State´s.
CCS ASSETS:
CONSORCIO DE COMPENSACIÓNDE SEGUROS
COINSURER
ADJUSTMENT SUPERVISING
REINSURANCE
C O I N S U R E R
M.C.I. C.C.S.’s participation in CoinsuranceM.C.I. C.C.S.’s participation in Coinsurance
0
10
20
30
40
50
60
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
PLAN
%
Y E A R 2005 2004 2003 2002 2001 PREMIUMS Viable
Experimental20,4
39,6
21,8
33,0
20,1
30,9
18,7
26,0
17,4
16,8
CLAIMS
Viable
Experimental
21,1
55,0
14,8
33,5
13,3
20,7
18,6
24,5
22,5
14,3
% CLAIMS/PREM.
Viable
Experimental
103,7%
139 %
68%
101,6%
66,2%
66,9%
99,8%
94,4 %
129,5 %
85,1 %
T O T A L 127 % 88,2% 66,6% 96,7% 107,6%
PREMIUMS AND CLAIMS
C.C.S. AS COINSURER (Millon Euros)
Million Euros = € 1,000,000.00Forecast November 2005
Total Coinsurance outcome andTotal Coinsurance outcome andC.C.S. outcome according to its participation (€)C.C.S. outcome according to its participation (€)
-40.000.000,00
-20.000.000,00
0,00
20.000.000,00
40.000.000,00
60.000.000,00
80.000.000,001980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
PLAN
EU
RO
S
RESULTADO C.C.S. EN COASEGURO EUROS RESULTADO GOLBAL DEL COASEGURO EUROS
ADJUSTMENT SUPERVISING
An expert system implemented by the C.C.S., required by law An expert system implemented by the C.C.S., required by law
Is carried out both in the field and through documentsIs carried out both in the field and through documents
The supervision can be made before, during or after the adjustmentsThe supervision can be made before, during or after the adjustments
It is based on a technical tool: OFFICIAL ADJUSTMENT RULESIt is based on a technical tool: OFFICIAL ADJUSTMENT RULES
It is based on quick, truthful information interchanged amongAgroseguro and C.C.S. about claimsIt is based on quick, truthful information interchanged amongAgroseguro and C.C.S. about claims
M.C.I. ADJUSTMENT SUPERVISINGM.C.I. ADJUSTMENT SUPERVISING
It guarantees:It guarantees:
A higher degree of reliability of adjustments andA higher degree of reliability of adjustments and
reinsuring functionreinsuring function
M.C.I. OFFICIAL ADJUSTMENT RULES TYPESM.C.I. OFFICIAL ADJUSTMENT RULES TYPES
General agricultural produceGeneral agricultural produce
General livestockGeneral livestock
Within agriculture by industry(example: production with quality damage guarantee)
Within agriculture by industry(example: production with quality damage guarantee)
Within livestock by industry(example: cattle insurance)
Within livestock by industry(example: cattle insurance)
Specific Specific
GARLIC, ARTICHOKE, ONION, CAULIFLOWER, STRAWBERRY, GREEN PEA, GREEN BEAN, SNAP BEAN, MELON, WATER MELON, POTATO, TOMATO, PEPPER AND AUBERGINE
GARLIC, ARTICHOKE, ONION, CAULIFLOWER, STRAWBERRY, GREEN PEA, GREEN BEAN, SNAP BEAN, MELON, WATER MELON, POTATO, TOMATO, PEPPER AND AUBERGINE
M.C.I. PUBLISHED ‘OFFICIAL ADJUSTMENT M.C.I. PUBLISHED ‘OFFICIAL ADJUSTMENT RULES’RULES’
GENERAL AGRICULTURALGENERAL AGRICULTURAL
CEREALS (WINTER AND SPRING)CEREALS (WINTER AND SPRING)
OLIVE (TABLE AND OIL)OLIVE (TABLE AND OIL)
COTTON, RAPESEED, SUNFLOWER, HOPS, BEET SUGAR, TOBACCOCOTTON, RAPESEED, SUNFLOWER, HOPS, BEET SUGAR, TOBACCO
HAZELNUTHAZELNUT
FRUIT AND CHERRYFRUIT AND CHERRY
CITRUSCITRUS
PULSESPULSES
BANANABANANA
GRAPE (WINE AND TABLE)GRAPE (WINE AND TABLE)
R E I N S U R A N C E
B: ViableA: Experimental
M.C.I. MAIN CARACTHERISTICS OF THE M.C.I. MAIN CARACTHERISTICS OF THE REINSURANCE AGREEMENTREINSURANCE AGREEMENT
It depends on groups
Ministerial Order
Outcomesby groupsOutcomesby groups
( - ) and ( - ) Compensation for both groups
( - ) and ( + ) Partial compensation of ( - ) with ( + ) of the other
(+ ) and ( + ) Profit-Sharing
Compensationor Profit-SharingCompensationor Profit-Sharing
Compensation
COMPENSATION FOR LINES GROUP A
Reinsurance: compensation and profit sharingReinsurance: compensation and profit sharing
• Losses superior to 601.012,10 Euros
COMPENSATION FOR LINES GROUP B• By tiers of losses. C.C.S. compensates as per a percentage over the excess of losses.
PARTIAL COMPENSATION FOR THE NEGATIVE OUTCOME OF ONE GROUP WITH THE POSITIVE OUTCOME OF THE OTHER.
• The loss to be compensated for the C.C.S. is deducted by a percentage that depends on the profit.
PROFIT SHARING
( - ) and ( - )
( - ) and ( + )
(+ ) and ( + )
Y E A R 2005 2004 2003 2002 2001 SURCHARGES Viable
Experimental29,8
52,2
32,2
46,4
32,8
46,9
29,9
42,7
27,8
34,7
EXCESS of LOSS
Viable
Experimental
5,7
177,7
0
26,5
0
0
20,6
22,2
48,4
0
% CLAIMS/PREM
Viable
Experimental
19,1%
340,4 %
0,0%
57,1%
0,0%
0,0%
68,9%
52,0%
174,1%
0,0%
T O T A L 223,7 % 33,7% 0,0% 59,0% 77,4%
PREMIUMS AND CLAIMS
C.C.S. AS REINSURER (Millon Euros)
1 Million Euros = € 1,000,000.00
Forecast November 2005
Accepted Reinsurance: premiums, excessAccepted Reinsurance: premiums, excessof loss and porfit sharing (€)of loss and porfit sharing (€)
0
20.000.000
40.000.000
60.000.000
80.000.000
100.000.000
120.000.000
140.000.000
160.000.000
180.000.000
200.000.000
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
PLAN
EU
RO
S
PAGOS EXC. SINIESTRALIDAD EUROS PRIMAS REASEGURO EUROS
REASEGURO PARTICIPACIÓN EN BENEFICIOS EUROS
Reinsurance premiums and excess of loss: forecast for 31/12/2005 based on data from 16/11/2005
Reinsurance premiums, Excess of loss and Reinsurance premiums, Excess of loss and Equalization Reserve (€)Equalization Reserve (€)
0
50.000.000
100.000.000
150.000.000
200.000.000
250.000.000
300.000.000
350.000.000
400.000.000
450.000.000
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
PLAN
EU
RO
S
PAGOS EXCESO SINIESTRALIDAD PRIMAS REASEGURO PROV. DE ESTABILIZACIÓN ACUMULATIVA
Reinsurance premiums and excess of loss: forecast for 31/12/2005 based on data from 16/11/2005
I N S T I T U T I O N S
AGRICUL. MINISTRY
ENESA INSUREDFARMERS
AGROSEGURO
CONSORCIOCOMP. SEGUROS
INTERNATIONALREINSURANCE
INTERNATIONAL RETROCCESION REINSURANCE
INTERNATIONAL RETROCCESION REINSURANCE
TO LIMIT THE STATE’S FINANCIAL BURDENTO LIMIT THE STATE’S FINANCIAL BURDEN
C.C.S.
EQUALIZATION RESERVE
C.C.S.: EQUALIZATION RESERVE (€)C.C.S.: EQUALIZATION RESERVE (€)
Year General
Activity
Agricultural
Activity
1997 1.088.759.607 84.278.956
1998 1.353.364.150 142.228.307
1999 1.492.744.633 120.416.425
2000 1.632.065.486 214.638.122
2001 1.878.925.036 210.041.693
2002 2.077.479.347 251.079.128
2003 2.425.663.116 331.317.367
2004 2.808.304.342 394.018.718
I N S T I T U T I O N S
AGRICUL. MINISTRYENESA
INSUREDFARMERS
AGROSEGURO
CONSORCIOCOMP. SEGUROS
INTERNACIONALREINSURANCE
STATE
To incorporate the new agricultural trends: Organic agriculture and more efficient production techniquesTo incorporate the new agricultural trends: Organic agriculture and more efficient production techniques
To develop the implementation of satellite technology (pasture insurance)To develop the implementation of satellite technology (pasture insurance)
M.C.I. THE NEAR FUTUREM.C.I. THE NEAR FUTURE
To extend the coverage of every kind of produce, zone and risk, including forest-fire risk, tropical and sub-tropical produce and epidemic animal diseases.
To extend the coverage of every kind of produce, zone and risk, including forest-fire risk, tropical and sub-tropical produce and epidemic animal diseases.
To promote the insurance as an instrument of income guarantee and reinforce its role as instrument of agricultural planning policy (subsidies), in compliance with the European Union regulations (natural disasters)
To promote the insurance as an instrument of income guarantee and reinforce its role as instrument of agricultural planning policy (subsidies), in compliance with the European Union regulations (natural disasters)
M.C.I. as complement or substitute of state intervention proceduresM.C.I. as complement or substitute of state intervention procedures
To improve the supervision systems, applying the identification system SIG-PACTo improve the supervision systems, applying the identification system SIG-PAC
AGROSEGURO:http://[email protected]
ENESA:http://enesa.mapa.es/pls/pwe/pweDGSFP:http://www.dgsfp.minhac.es/dgsfp
CCS:http://[email protected]
Web siteWeb site
http://www.consorseguros.es/http://www.consorseguros.es/