Spain: Understanding How the CCS Impacts Life and Disability Benefits

Spain: Understanding How the CCS Impacts Life and Disability BenefitsThe Consorcio de Compensacion de Seguros (CCS) is a public business organization in Spain that was established in the early 1940s to support the Spanish insurance market after losses during their Civil War (1936-39). Today, the primary role of the CCS is to act as a catastrophe insurer to protect policyholders from natural disasters like floods and earthquakes, and socio-political risks like terrorism.

We asked our Spanish Partner Clara Calzada of SARE to explain how the CCS impacts employee Death and Disability benefits in Spain.

Asinta: Is the CCS a government agency?

SARE: No. The CCS is a Spanish public organization with its own legal status, regulation, and assets. These are independent from the Spanish government’s.

Asinta: Why should employers be aware of CCS?

SARE: Multinational employers should be aware that CCS cover exists in Spain, and that it applies to Death and Disability Policies. It’s important to pay these policies’ premiums on time because the CCS surcharge fee is included in the premium. Paying on time ensures CCS cover applies should catastrophe strike.

It’s also important to note that Death and Disability Policies, and all Policies where CCS applies, include a CCS Clause outlining what CCS coverage offers. This was added to policies in July of 2017.

Asinta: The CCS has surcharge fees. What should employers understand about that?

SARE: CCS surcharges are part of employers’ policies. They are added to the net premium to calculate total premium, and are shown on the invoice. Regarding the surcharge fee it’s important employers understand:

  • The CCS surcharge fee applies to Death and Disability policies.
  • The way the surcharge is calculated may vary from one type of Insurance to another.

More information can be found at the CCS website. An English version of the site is available. See the language choice at the upper right side of the home page.

Need assistance with benefits in Spain?

We’d be happy to put you in touch with our Spanish Partner SARE.