The Puerto Rico International Insurers Association (PRIIA) has reassured the insurance industry that although Puerto Rico has filed for voluntary bankruptcy, its international insurers remain "open for business".
PRIIA confirmed that there will be no change to the tax, regulatory, or other legal status of any licensed insurer operating in the centre as a result of the filing.
Puerto Rico filed for bankruptcy under Title III of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA).
PROMESA provides the legal framework for local Puerto Rico government entities to restructure debt obligations.
The legislation was enacted by US Congress and signed into law by President Barack Obama in 2016.
Walter Keenan, PRIIA member and CEO of Advantage Insurance, explained that PROMESA was enacted to help grow Puerto Rico’s economy.
Keenan stated: “The international insurance centre has brought jobs and investment capital to Puerto Rico and will continue to play an important role in the commonwealth’s return to prosperity.”
“PROMESA recognises the importance of growth engines, such as the international insurance centre, and the law expressly preserves and continues the benefits our clients and companies enjoy today.”
Keenan insisted that Puerto Rico’s international insurers remain open for business.
He said: “Regulation of companies operating in the international insurance centre is provided by the Office of the Commissioner of Insurance of Puerto Rico, which receives funding from fees paid by its regulated entities.”
“There is no change to the tax, regulatory, or other legal status of any licensed insurer operating in the centre as a result of the Title III filing."
