Puerto Rico officials evaluate insurance management for public agencies post Hurricane Maria

In a recent meeting of the Cámara de Representantes de Puerto Rico, critical discussions emerged regarding the management of public insurance following the devastating impact of Hurricane María. Lawmakers highlighted the urgent need for improved insurance coverage for public properties, emphasizing that many were inadequately insured, leading to significant financial losses.

Key points raised included the importance of ensuring that public entities maintain comprehensive inventories of their properties to avoid gaps in coverage. It was noted that some properties that suffered damage were not included in the insurance inventory, leaving them without necessary protection. This oversight has prompted calls for better risk management practices and the establishment of programs to enhance insurance coverage for both government and municipal properties.

The meeting also addressed the implications of insurance premiums and the potential for increased costs if coverage is not adequately managed. Officials discussed the necessity of competitive processes in selecting insurance producers to ensure the best prices for the government. The role of the Department of Treasury in overseeing public insurance contracts was clarified, with assurances that licensed producers would be evaluated for their compliance and performance.

A significant concern raised was the potential loss of federal funding for future disasters if public entities fail to secure adequate insurance coverage. The discussion underscored the importance of adhering to federal requirements to maintain eligibility for assistance in the event of another natural disaster.

As the meeting concluded, lawmakers expressed support for initiatives aimed at securing sufficient funding for public insurance operations, while also advocating for alternative mechanisms to achieve these goals without imposing additional financial burdens on the government. The discussions reflect a growing recognition of the need for robust insurance strategies to safeguard public assets against future calamities.