Catastrophic risk

Risk arising from extraordinary and improbable events which, due to their magnitude, involve a great deal of damage. In Spain, the Insurance Compensation Consortium (Consorcio de Compensación de Seguros; CCS) covers this type of risk also known as extraordinary risk.

For example, catastrophic risks are natural phenomena such as earthquakes and tsunamis, floods, etc. Extraordinary risks are also considered to be those caused violently as a consequence of terrorism, rebellion, riot and civil commotion.