Sunday, November 17, 2019

Puerto Rico Treasury selects 20 gov’t insurance brokers

By on November 2, 2019

New contracting carried out after ‘reports of poor performance’ by certain producers

SAN JUAN — Puerto Rico Treasury Secretary Francisco Parés Alicea announced Friday that 20 insurance producers were selected to broker insurance policies covering some 122 commonwealth agencies and public corporations, after a “rigorous process of open competition.”

These were selected out of 38 insurance producers who submitted proposals on risk assessment, loss control and advice on the management and contracting of risk insurance for the government of Puerto Rico, the Treasury chief said in a release Friday, noting that these, in turn, were among the 40 producers who responded to a Treasury request for qualifications last month.

The term of the contracts for the 20 selected insurance producers begins this month and extends through the rest of fiscal year 2020, which ends June 30, Parés Alicea said.

An insurance producer is a person or company licensed to sell insurance products on behalf of insurers within a particular state. The term producer is interchangeable with agent, representative or broker.

“We have used the mechanisms necessary to guarantee a transparent and competitive selection and contracting process that complies with statutes,” the Treasury head said in the release, in which he noted that the selected brokers were vetted by an evaluating committee composed of officials from Treasury’s public insurance and legal divisions as well as the Insurance Commissioner’s Office, a representative from the Fiscal Agency & Financial Advisory Authority (Aafaf by its Spanish acronym), and an “observer” from the Financial Oversight & Management Board. He said the committee made its selections using 15 evaluation criteria.

“After assigning point scores with professional rigor, members of the Committee conducted a second round of analysis in which they carried out a deeper examination of the performance background, service and experience of each one of the proponents to qualify them,” Parés Alicea said.

The Treasury secretary said he ordered a new contracting process for the producers in July, after receiving reports of poor performance by certain agents and complaints that the former process was “too open to subjectivity.”

“Since I assumed the post of Secretary, I have implemented, along with my work team, several internal administration initiatives to fight and mitigate any risk of corruption and avoid contractual processes and relations that harm the public and fiscal wellbeing of Puerto Rico. This is the goal of this administration and the commitment of our governor, Wanda Vázquez Garced,” he said in the release.

Aafaf Executive Director Omar J. Marrero added in the release that his agency’s participation “ensured the transparency of the process, which was carried out following the highest standards of confidentiality.” He said Aafaf would continue working with the Treasury and other agencies to “guarantee competitive and transparent processes that result in a benefit to the people.”

The committee, Parés Alicea said, carried out eight work sessions and its members made the selections unanimously. Each of the 20 producers obtained a score of 70 percent or higher in the established criteria. Finally, “agencies and corporations were distributed according to the score, operating capacity and experience of each of the companies,” the official said.

The following is a list of the selected insurance producers:

  1. A. Maldonado & Associates Inc.
  2. Aegis International
  3. Aon Risk Solutions
  4. Baco & Amador Matta   
  5. Christiansen Insurance                                         
  6. Consuelo Revuelta Insurance Brokers
  7. DSG Insurance Corp.                                   
  8. Edwin I. Rivera Brokers Corp.                                                 
  9. Fedelta Insurance Corp.                                     
  10. Font Insurance                                                   
  11. Garcia Cespedes Insurance                                                           
  12. General Insurance Brokers Inc.                      
  13. Goas & Associates                                                
  14. IAS Integrated Assurance
  15. Jose A. Diaz Agosto Insurance Inc.                                                        
  16. Lone Start Insurance Producers Inc.                                                            
  17. Owners Risk Insurance
  18. Popular Risk
  19. Vidal & Rodriguez Inc.                                                     
  20. Virtue Insurance Group