Drought in Spain spurs largest-ever claim for agricultural insurance
According to Aon, the drought would be the worst claim that Spanish agriculture insurance has ever paid for.
Agroseguro, Spain’s largest agricultural insurance company, anticipates a record-breaking compensation claim of more than 300 million euros (US$325 million) as a result of extensive damage caused by this year’s severe drought in the country. According to Aon’s Weekly Cat Report for May 26, the agriculture sector is under the most extreme stress it has ever experienced, with an estimated 1.5 million hectares (3.7 million acres) of crops destroyed.
In response to the ongoing drought situation, the Spanish government has approved a massive 2.2 billion ($2.4 billion) plan.
Spain is in a perilous scenario, with rising temperatures, lengthy droughts, and unusually heavy rainfall. The deficit has exacerbated wildfires and drought conditions throughout the country.
The newest wave of wildfires has been particularly devastating in the province of Estremadura, where over 12,000 hectares (29,700 acres) of land have been consumed by the raging flames in just a week.
According to data from the European Forest Fire Information System (EFFIS), Spain has had the highest number of fires and the largest area burned since 2006.
The devastation caused by this harsh weather is exacerbated by massive agricultural losses, which are anticipated to cost hundreds of millions of dollars.
Hundreds of residents were forced to flee their houses as the fires approached.
