Puerto Rico’s lawmakers are advancing legislation aimed at enhancing oversight of the international insurance sector with the introduction of House Bill 428. This bill seeks to amend the Insurance Code, ensuring alignment with the standards established by the U.S. National Association of Insurance Commissioners (NAIC).
During a public hearing led by Rep. Jorge Navarro-Suárez of the House Committee on Banking, Insurance, and Commerce, the proposed bill was discussed with the goal of improving transparency and compliance within the industry. Intended changes include the establishment of new subcategories for international insurers based in Puerto Rico, a move that has garnered support from key stakeholders.
Insurance Commissioner Suzette Del Valle-Lecároz emphasized the importance of the legislation in reinforcing the financial and regulatory structure governing the International Insurance Center. She stated, “This bill strengthens the financial and legal structure of the International Insurance Center, guarantees the application of NAIC solvency standards, and consolidates the government’s commitment to transparency and effective supervision of the insurance market.”
This initiative comes on the heels of the NAIC suspending Puerto Rico’s accreditation due to concerns regarding compliance among international insurers within the center. The NAIC specifically questioned whether these insurers were adhering to the organization’s 22 solvency and governance standards, including participation in state guaranty associations designed to protect consumers in the event of insolvency.
The Insurance Commissioner’s Office is currently appealing the suspension, and the accreditation remains valid throughout this process. Del Valle-Lecároz noted that the passage of House Bill 428 would bolster Puerto Rico’s position, reinforcing its regulatory oversight and ensuring that international insurers adhere to robust governance practices. This, she argues, would enhance consumer confidence and support the development of a competitive and sustainable insurance industry beneficial to the island’s economy.
Broad backing for the bill has been evident within the industry, with endorsements from the Puerto Rico International Insurers Association and the Association of Insurance Companies of Puerto Rico. Attorney Antonio Ramírez, representing the International Insurers Association, praised the revised language of the measure, claiming it effectively addressed earlier concerns about ambiguity.
Iraelia Pernas, executive director of the Association of Insurance Companies of Puerto Rico, highlighted that the bill incorporates critical NAIC parameters regarding solvency, capital, and reserves, thereby providing a comprehensive framework for international insurers aiming to operate in the U.S. market. “By adopting these standards, Puerto Rico strengthens the financial soundness of companies operating under the International Insurance Center model,” Pernas stated.
As the hearing concluded, Navarro-Suárez indicated that the committee would prepare a favorable report, recommending that the bill be placed on the agenda for the upcoming regular House session. The outcome of this legislation could be pivotal for Puerto Rico’s insurance landscape, potentially attracting new companies while ensuring existing firms maintain high standards of operation.