Law 87/1978, of December 28, Combined Agricultural Insurance, meets tomorrow 40 years. This law was the first approved after the entry into force of the Magna Carta, which also now celebrates its 40th anniversary, and is the result of the Pacts of the Moncloa and the political consensus that occurred during the years of the Transition. It was one of the pillars of the clear commitment to the transformation and modernization of the agri-food sector, one of the most powerful and exporting industries in Spain, a country that was a pioneer in the approval of such a standard.
The Law on Combined Agricultural Insurance was issued with the objective of obtaining comprehensive agricultural insurance, capable of protecting agricultural holdings from the multiple risks to which they are subject-derived from the climatic variability of Spain-and based on the technical balance between premiums and claims, and came to institute a system characterized by the participation of farmers and ranchers -through their representative organizations-, public administrations -which also subsidize a significant part of the cost of insurance- and the insurance sector , which acts in the form of a co-insurance pool managed by AGROSEGURO, SA
Since its approval, this law, which four decades later maintains its full applicability, has endowed the Spanish Agrarian Insurance system with a unique value and remarkable stability, through public-private cooperation and voluntary participation in insurance. of the insurance companies as well as the farmers themselves, allowing their consolidation as one of the most developed and efficient systems in the world.