THE SPANISH INSURANCE INDUSTRY--AN ANALYSIS.

This article makes certain comparisons between the Spanish insurance industry and the insurance industry in other parts of the world, particularly the United States. Through such comparisons it is hoped that insurance practices may be improved, particularly in developing nations of the world. The Spanish insurance industry is characterized by several features which contrast with those in other nations. Major differences include centralized regulation and control, about average growth of premium income, relative undercapitalization, free entry to insurance markets for both domestic and alien insurers, profitable underwriting (except for voluntary automobile insurance) and innovative participation and cooperation with the industry by government. The catastrophic loss plan in Spain deserves special study as one way to handle ‘uninsurable’ risks which often plague developing nations by restricting industrial growth. Among the problems facing Spanish insurers are relatively high distribution expenses, inadequate levels of education for insurance, and gaps in coverage for risks commonly insured in other countries. [ABSTRACT FROM AUTHOR]