Governance, Risk and Compliance - The Puerto Rican Insurance Industry

Governance, Risk and Compliance - The Puerto Rican Insurance Industry

Summary

The Office of the Commissioner of Insurance (Oficina del Comisionado de Seguros - OCS) is the government authority responsible for supervising and regulating the Puerto Rican insurance and reinsurance industry. The OCS is instrumental in ensuring the stability and efficient functioning of insurers and reinsurers. The primary law governing the industry is the Insurance Code of Puerto Rico.

The Code regulates insurance and insurance mediation activities to make insurance operations credible, efficient, secure and stable. It comprises the definitions, licensing process, capital requirements, policy terms, and penalties for offenders of the provisions. The latest amendment to the Insurance Code was made in 2013.

Key Findings

  • OCS regulates and supervises the Puerto Rican insurance industry
  • Composite insurance is not permitted in Puerto Rico
  • 100% FDI is permitted in Puerto Rican insurance industry
  • Motor vehicle liability insurance is compulsory in Puerto Rico
  • Non-admitted insurance is not permitted in Puerto Rico. However, there are a few exceptions
The report Governance, Risk and Compliance - The Puerto Rican Insurance Industry, is the result of extensive research into the insurance regulatory framework in the Puerto Rico. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

The report provides -
  • An overview of the insurance regulatory framework in the Puerto Rico
  • The latest key changes, and changes expected in the country’s insurance regulatory framework
  • Key regulations and market practices related to different types of insurance product in the country
  • Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in the Puerto Rico
  • Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations
  • Details of the tax and legal systems in the country.
Scope
  • The report covers details of the insurance regulatory framework in the Puerto Rico.
  • The report contains details of the rules and regulations governing insurance products and insurance entities.
  • The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
  • The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
  • The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to buy
  • Gain insights into the insurance regulatory framework in the Puerto Rico.
  • Track the latest regulatory changes, and expected changes impacting the Puerto Rican insurance industry.
  • Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
  • Understand key regulations and market practices pertaining to various types of insurance product.


1 INTRODUCTION
1.1 What is this Report About?
1.2 Definitions
2 GOVERNANCE, RISK AND COMPLIANCE
2.1 Legislation Overview and Historical Evolution
2.2 Latest Changes in Regulation
2.3 Legislation and Market Practice by Type of Insurance
2.3.1 Life insurance
2.3.2 Property insurance
2.3.3 Motor insurance
2.3.4 Liability insurance
2.3.5 Marine, aviation and transit insurance
2.3.6 Personal accident and health insurance
2.4 Compulsory Insurance
2.4.1 Motor third-party liability insurance
2.4.2 Professional indemnity insurance for health professionals and institutions
2.4.3 Workers’ compensation insurance
2.4.4 Insurance for nautical tourism and marina activities
2.5 Supervision and Control
2.5.1 International Association of Insurance Supervisors
2.5.2 Association of Insurance Supervisors Latin America
2.5.3 Office of the Commissioner of Insurance
2.5.4 National Association of Insurance Commissioners
2.6 Non-Admitted Insurance Regulations
2.6.1 Overview
2.6.2 Intermediaries
2.6.3 Market practices
2.6.4 Fines and Penalties
2.7 Company Registration and Operations
2.7.1 Type of insurance organization
2.7.2 Establishing a local company
2.7.3 Foreign ownership
2.7.4 Types of license
2.7.5 Capital requirements
2.7.6 Solvency margin
2.7.7 Reserve requirements
2.7.8 Investment regulations
2.7.9 Statutory return requirements
2.7.10 Fee structure
2.8 Taxation
2.8.1 Insurance premium or policy taxation
2.8.2 Withholding taxes on premium paid overseas
2.8.3 Corporate tax
2.8.4 VAT
2.8.5 Captives
2.9 Legal System
2.9.1 Introduction
2.9.2 Access to court
2.9.3 Alternative dispute resolution
3 APPENDIX
3.1 Methodology
3.2 Contact GlobalData
3.3 About GlobalData
3.4 GlobalData’s Services
3.5 Disclaimer
List of Tables
Table 1: Insurance Industry Definitions
Table 2: Puerto Rico - Insurance Regulatory Framework Key Features
Table 3: Puerto Rico - Life Insurance Regulatory Framework
Table 4: Puerto Rico - Property Insurance Regulatory Framework
Table 5: Puerto Rico - Motor Insurance Regulatory Framework
Table 6: Puerto Rico - Liability Insurance Regulatory Framework
Table 7: Puerto Rico - Minimum Capital and Surplus Requirement
Table 8: Puerto Rico - Corporate Tax Rates for the Financial Year 2019
List of Figures
Figure 1: Puerto Rico - Insurance Supervision and Control at Various Levels
Figure 2: Puerto Rico - Insurance Regulatory Frameworks for Company Registration and Operation

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