Bulletin: Spanish Government And Insurance Consortium Will Take Most Of Flood Cost Burden; Impact On Banks Will Be Contained

MADRID, Nov. 7, 2024--S&P Global Ratings anticipates that the bulk of the costs associated with the devastating floods suffered by some municipalities in Valencia, Castilla La Mancha, and Andalucía on Oct. 29, 2024, will be assumed by Spain's compulsory catastrophic risk insurance consortium, Consorcio de Compensación de Seguros (CCS), and the central government. Thus the costs Spanish banks will have to absorb will be contained. More than 200 people died; some are still missing. The severe physical damage taken by housing and business premises, railway and roads infrastructure, private cars, fleets, and land highlights the increasing risks presented by extreme weather events. Furthermore, while reconstruction efforts are underway, given the severity of the damage, restoring normal conditions will take some

...November 7, 2024 MADRID, Nov. 7, 2024--S&P Global Ratings anticipates that the bulk of the costs associated with the devastating floods suffered by some municipalities in Valencia, Castilla La Mancha, and Andalucfa on Oct. 29, 2024, will be assumed by Spain's compulsory catastrophic risk insurance consortium, Consorcio de Compensaci=n de Seguros (CCS), and the central government. Thus the costs Spanish banks will have to absorb will be contained. More than 200 people died; some are still missing. The severe physical damage taken by housing and business premises, railway and roads infrastructure, private cars, fleets, and land highlights the increasing risks presented by extreme weather events. Furthermore, while reconstruction efforts are underway, given the severity of the damage, restoring normal conditions will take some time. Two days ago, the Spanish government announced its first aid package, which is worth 10.6 billion (0.7% of GDP). The package will support households, companies,...

Bulletin