The Spanish drought is the largest claim paid by agricultural insurance in Spain, according to professional services company Aon.
Agroseguro, Spain’s leading agricultural insurance provider, is preparing for an unprecedented payout of more than €300 million ($325 million) in compensation due to widespread damage caused by severe drought. this year in Spain.
With approximately 1.5 million hectares (3.7 million acres) of arable crops affected, the agricultural sector is facing its most significant claim ever, Aon stated in its Weekly Cat Report in May 26.
In response to the long-term drought crisis, the Spanish government has given the green light to a comprehensive plan worth €2.2 billion ($2.4 billion).
Spain finds itself in an alarming situation as rising temperatures, a prolonged rainy season, and an alarming lack of rain fuel wildfires and worsen drought conditions across the country. .
The recent forest fires in the Province of Estremadura have exacerbated the severity of the crisis, where the number of fires and total burnt area have reached their highest level since 2006 for this time of the year.
Data from the European Forest Fire Information System (EFFIS) revealed that Spain has witnessed the highest number of fires and the largest area burned since 2006.
The terrible consequences of this severe weather are further compounded by the severe losses in agriculture, with estimated damage reaching hundreds of millions of euros.
The latest forest fires have particularly affected the Province of Estremadura, where more than 12,000 hectares (29,700 acres) of land have been consumed by the relentless blaze in the past week alone.
Faced with the impending danger, hundreds of residents were forced to evacuate their homes due to the approaching fires.
