Spain Consorcio Model 11 - Integrale D&O Policies

Overview

The Spain Consorcio Model 11 is a surcharge calculation for Directors & Officers (D&O) Integral insurance policies. The surcharge is applied based on the relationship between the policy's total exposed capital and the crime limit coverage.

What is This Surcharge?

The Consorcio surcharge is an additional premium that provides coverage for extraordinary risks in Spain. For D&O Integral policies, the surcharge amount is calculated using a formula that considers:

• The total exposed capital (total indemnity limit)
• The crime limit coverage amount
• A fixed premium rate of 0.12 per mille (0.12‰)

How the Surcharge is Calculated

The surcharge is calculated as the maximum of two values:

Method 1: Based on the Crime Limit

Crime Limit × Coefficient × Premium Rate (0.12‰)

Method 2: Based on Total Exposed Capital

Total Exposed Capital × Percentage × Premium Rate (0.12‰)

The final surcharge is the higher of these two calculated values.

Coefficient and Percentage Table

The coefficient and percentage used in the calculation depend on the ratio between the Crime Limit and the Total Exposed Capital:

Ratio Range (Crime Limit ÷ Total Exposed Capital)	Coefficient	Percentage
Up to 10%	3.5	20
More than 10% up to 27%	2.4	36
More than 27% up to 50%	1.7	65
More than 50% up to 75%	1.3	86
More than 75%	0	100

Example Calculation

Policy Details:

• Total Exposed Capital (Total Indemnity Limit): €10,000,000
• Crime Limit: €1,000,000
• Premium Rate: 0.12‰ (0.00012)

Step 1: Calculate Ratio

Ratio = €1,000,000 ÷ €10,000,000 = 0.10 (10%)

Step 2: Find Coefficient and Percentage

A ratio of 10% falls into the "Up to 10%" band:

• Coefficient: 3.5
• Percentage: 20% (0.20)

Step 3: Calculate Both Values

Method 1 = €1,000,000 × 3.5 × 0.00012 = €420
Method 2 = €10,000,000 × 20% × 0.00012 = €240

Step 4: Apply Maximum

Surcharge = MAX(€420, €240) = €420

Final Consorcio surcharge: €420

Required Information

To calculate this surcharge, the following information is needed:

• Total Exposed Capital: The policy's total indemnity limit / total capital amount at risk
• Crime Limit: The crime coverage limit from the D&O Integral policy
• Premium Rate: Fixed at 0.12‰ (0.12 per mille) for D&O Integral coverage

Important Notes

• The premium rate is fixed at 0.12‰ for D&O Integral calculations.
• The ratio is calculated as: Crime Limit ÷ Total Exposed Capital.
• The final surcharge is always the higher of the two calculated values.
• This calculation applies specifically to Spain Consorcio Model 11 for D&O Integral policies.