Insurance is of paramount importance when needing to adapt to the current and future risks of climate change and its consequences (often consisting in natural catastrophes and extreme hydrometeorological phenomena), which directly affect the activity of the insurance sector. The latter is forced to take measures to assess the change in the covered risks and seek solutions that allow reducing damage and increasing the resilience of society, even when the latter also plays a fundamental role in their mitigation.
Spain, where insurance is ubiquitous, has an extraordinary risk coverage system that includes the main hydrometeorological hazards. The system is established by law and managed by the Insurance Compensation Consortium (Consorcio de Compensación de Seguros - CCS), of which it is a fundamental part. It increases stability and protects policyholders. The articipation of the private insurance sector is essential for its proper functioning. This coverage places us in a favorable position to address the insurance challenge of climate change.