Puerto Rico moves to tighten oversight of insurance sector
Puerto Rico lawmakers are moving forward with legislation to strengthen oversight of the island’s international insurance sector through House Bill 428, which would amend the Insurance Code to align local regulations with standards set by the U.S. National Association of Insurance Commissioners.
The bill, discussed during a public hearing chaired by Rep. Jorge Navarro-Suárez of the House Committee on Banking, Insurance and Commerce, would also establish new subcategories for international insurers operating from Puerto Rico to improve transparency and compliance.
The proposed changes were introduced by the Insurance Commissioner’s Office to reinforce the financial and regulatory framework governing the International Insurance Center.
Insurance Commissioner Suzette Del Valle-Lecároz said the 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.”
Del Valle-Lecároz said the measure is essential to maintaining Puerto Rico’s accreditation with the NAIC, protecting consumer confidence and supporting the development of a competitive, sustainable industry vital to the island’s economic stability.
Earlier this year, the NAIC suspended Puerto Rico’s accreditation after raising concerns about compliance among international insurers operating under the center.
According to the commissioner, NAIC officials questioned whether insurers affiliated with the center were meeting the organization’s 22 solvency and governance standards, particularly those tied to participation in state guaranty associations that protect consumers if a company becomes insolvent. The Insurance Commissioner’s Office is appealing the suspension, and the accreditation remains valid during that process.
“This legislation demonstrates Puerto Rico’s commitment to strengthening regulatory oversight and ensuring that international insurers operate under sound governance,” Del Valle-Lecároz said. “The approval of this bill will give the NAIC confidence that Puerto Rico is enforcing the same level of supervision expected across the United States.”
She added that adopting the proposed amendments would place international insurers in a stronger position when doing business in other states and territories.
“It will also encourage new companies to establish operations in Puerto Rico, knowing that our regulators uphold strict financial and operational standards,” she said.
The bill has received broad industry support. The Puerto Rico International Insurers Association, represented by attorney Antonio Ramírez, endorsed the revised version of the measure, saying the amendments addressed earlier concerns about overly broad or ambiguous language.
The Association of Insurance Companies of Puerto Rico also expressed support. Its executive director, attorney Iraelia Pernas, said the bill incorporates NAIC parameters for solvency, capital and reserves, providing a clear framework for international insurers seeking authorization 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 said. “This ensures compliance with solvency requirements while preserving the island’s competitive advantages.”
At the close of the hearing, Navarro-Suárez said the committee would prepare a favorable report recommending that the bill be included on the agenda for the next regular House session.
