Public-private partnerships (PPPs), through which (re)insurers join forces with public authorities and other public or private entities, can play an important role in mitigating the effects of natural catastrophes. Existing PPPs have demonstrated how sharing expertise, data and experience in areas such as risk management, prevention and adaptation can make a difference in limiting the severity of the human and economic impact of natcat events.
Examples of successful PPPs in Europe vary enormously, since each region has different regulations, history and levels of risk awareness, each is exposed to different risks due to their geography, and each set of partnership participants has different expertise. One of the most distinct and oldest examples is the Spanish public-private partnership, created in 1941 and managed by the Consorcio de Compensación de Seguros (CCS). The CCS covers a large proportion of natcat perils and the system includes a state guarantee in case of catastrophic events exceeding the capacity of the CCS.
Click on the examples below for more information.