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Insurance market shows signs of stabilization; mortgage rates begin to ease, regulators say
Summary
The territory's insurance regulator reported NAIC reaccreditation and improved capacity among property-and-casualty carriers, while mortgage-rate data show modest declines; officials urged consumers to comparison-shop and said wooden-frame underwriting is possible on a case-by-case basis.
The Division of Banking, Insurance and Financial Regulation told lawmakers it earned reaccreditation from the National Association of Insurance Commissioners and that the local property-and-casualty market is showing improved capacity after storm-era disruptions.
Director Glendina Matthew said the NAIC determination allows other jurisdictions to rely on the division's examinations and could encourage more insurers to license in the territory. "This milestone was achieved following a comprehensive on-site evaluation," Matthew said.
Market capacity and premiums
Matthew said market reports to the division show improved capacity and fewer insurers seeking large, across-the-board rate increases this year. She said no property-and-casualty insurer requested a homeowners rate increase in the current year and that one insurer proposed a modest rate reduction after restructuring reinsurance, reporting a roughly 1.8 percent reduction.
Wood-frame underwriting: Matthew said insurers now consider wooden and mixed-frame homes on a case-by-case basis rather than categorically refusing them; underwriting depends on condition and insurer guidelines.
Mortgage market snapshot
The division also briefed the committee on mortgage-rate trends and lenders. A weekly primary mortgage-market survey cited by staff put the average 30-year fixed mortgage near 6.5 percent in early September, with the 15-year average at 5.6 percent; the federal funds rate and prime rate remain elevated compared with pre-2022 levels.
Why it matters: Rising insurance premiums and limited coverage options were a major constraint on homeownership and redevelopment after recent hurricanes. Improved market capacity and the prospect of slightly lower mortgage rates could ease some pressure on borrowers and developers.
Consumer guidance and regulatory follow-up
The division said it will continue market monitoring, encourage consumers to compare carriers and work with local agents, and provide a directory of licensed insurers to legislators and the public. Matthew said the division expects the reaccreditation to strengthen regulators' ability to examine multi-state insurers and support market confidence.
"We are encouraged to report signs of market stabilization," she told the committee.
