The Office of the Commissioner of Insurance of Puerto Rico (OCI) recently released Ruling Letter No. CN-2026-382-D regarding the use of artificial intelligence systems in the insurance industry. The key highlights are as follows:
- This ruling is applicable to all insurers, health services organizations, reinsurers, managers, producers, authorized representatives, general agents, and all other entities regulated by the OCI (collectively “Regulated Entity(ies)”).
- Any decision or action affecting consumers, insureds, claimants, applicants, vendors, or third parties will continue to be subject to the applicable provisions of the Puerto Rico Insurance Code, regardless of whether such decision was made directly by a person or was generated, supported, or recommended by an automated system, and Regulated Entities will continue to be fully liable for any such decision or action.
- Any Regulated Entity that uses artificial intelligence systems to support, influence, or make decisions concerning regulated activities must establish reasonable governance, oversight, and risk management mechanisms appropriate to the nature, complexity, and scope of the systems used.
- The responsibility for regulatory compliance shall not be delegated to external vendors, model developers, technology platforms, data vendors, or third-party contractors.
- When assessing the sufficiency of the implemented controls, the OCI may consider, among other factors, the nature of the decisions supported by the system, the level of autonomy of the technology used, the potential impact on consumers, the sensitivity of the processed information, the involvement of third parties, and the magnitude of the associated operational, regulatory, financial, or reputational risk.
Please note that this ruling became effective upon issuance on June 11, 2026 and all Regulated Entities domiciled in Puerto Rico must complete and file the Annual Certification of Compliance through the OCI Cybersecurity Portal no later than June 30th.
For any questions related to the above referenced ruling in Puerto Rico, please contact Westmont Associates!