Expect Puerto Rico Captive Insurance Initiatives in 2018

Road sign saying Bright Future Ahead

December 13, 2017 |

Road sign saying Bright Future Ahead

According to a recent news release from the Puerto Rico International Insurers Association (PRIIA), the US territory's insurance and financial services sector continues to grow with minimal interruption in the aftermath of Hurricane Maria and despite ongoing budget challenges. PRIIA also said that Puerto Rico has a strong and bright future ahead for insurance opportunities, including captive insurance company formations.

"There is no doubt Hurricane Maria brought great devastation to Puerto Rico. Nevertheless, the financial and insurance industry was able to quickly reestablish operations without major disruption. This attests to the island's solid financial services and insurance sector. It also demonstrates the effectiveness of the business continuity programs that both the public sector and the private industry have in place," said Hugo Cordova, PRIIA president.

Mr. Cordova also noted that PRIIA had already acted prior to Hurricane Maria to expand the association's capabilities to promote Puerto Rico as a leading international insurance domicile. In fact, several new initiatives are expected to be announced after the first of the year, with a particular focus on the numerous opportunities and benefits for captive insurance company formations.

Ruben Gely Rodriguez, a senior official within Puerto Rico's Office of the Commissioner of Insurance (OCI) confirmed this optimism.

"The demand for our Class 5 platform and related captive laws remain very attractive for companies in the United States and elsewhere," Mr. Gely said.

He noted that the OCI was open for business just 3 days after Hurricane Maria moved over the island, with several company formations and related licenses issued since then. Mr. Gely also pointed to the most recent OCI Annual Report showing that there has been a 90 percent increase in premium volume over the past year.

For regulatory/licensing inquiries, contact Mr. Gely by email or telephone: (787) 304–8000.

December 13, 2017