Cooperativa de Seguros Múltiples (CSM), one of Puerto Rico’s largest insurance providers, plans to expand its product offerings and technological capabilities as it looks to sustain growth over the next three to five years amid rising climate, cyber, and economic risks.
The information was provided by CSM President Yamil J. García Díaz during a recent interview with Caribbean Business.
“Our focus going forward is consistent growth, strong financial performance, and continuing to add value for our insured members,” he said. “Any growth we pursue has to be aligned with our values and principles as a cooperative.”
CSM, which operates in the property and casualty sector, is entering this next phase from a position of financial strength, with capital exceeding $400 million and several consecutive years of positive results. García Díaz said maintaining the company’s financial resilience will remain a top priority as CSM evaluates new market opportunities.
The CSM president confirmed that they are actively reviewing new insurance products, with particular attention to areas where consumer and business needs are not being adequately met by the current market. While no formal launch dates have been announced, García Díaz said CMS is closely monitoring emerging risks that could drive demand for new coverages.
Among these risks are cybersecurity threats, climate-related exposures, and other evolving liabilities driven by technological and geopolitical changes. García Díaz acknowledged that cyber risk has become a growing concern for businesses of all sizes.
He said CSM is developing a cyber insurance product, while also continuing to refine other offerings tied to emerging exposures. “We are constantly looking to innovate and improve,” he said, adding that these efforts are part of a broader push to stay ahead of risk trends affecting policyholders.
“Our focus going forward is consistent growth, strong financial performance, and continuing to add value for our insured members,” he said. “Any growth we pursue has to be aligned with our values and principles as a cooperative.”
Climate-related catastrophes remain a major concern for insurers globally, and García Díaz said the impact of severe events—both in Puerto Rico and abroad—continues to influence costs and risk structures throughout the industry.
He pointed to Hurricane Maria, which devastated Puerto Rico in September 2017, as a turning point that reshaped how risk is managed locally. In the aftermath of the massive storm, CSM significantly strengthened its reinsurance program, using the experience as a benchmark for future catastrophic events.
Today, CSM maintains what it describes as a highly robust reinsurance structure that exceeds regulatory requirements and is supported by more than 10 international reinsurers, including Swiss Re Group, Hannover Re, and Patria Investimentos. The goal, García Díaz said, is to ensure sufficient capacity to respond to events equal to or greater than Maria.
“This industry is characterized by low-frequency but high-severity events,” the executive said. “When those events occur, insurers must have the appropriate reinsurance in place to meet their commitments to policyholders.”
CSM has also addressed the effect of inflation on insurance costs, particularly in the auto sector. According to García Díaz, rising vehicle prices directly affect insured values, which in turn influence overall insurance costs.
However, he emphasized that auto insurance premiums in Puerto Rico are regulated, meaning rate increases are not automatic or discretionary. Pricing adjustments are subject to oversight by the Office of the Commissioner of Insurance and are tied to the insured value of the vehicle rather than broader economic conditions alone.
Technology continues to play a central role in the cooperative’s strategy. CSM has already implemented drones to assist with inspections and risk assessments, particularly after natural disasters, enabling faster, more precise evaluations of property damage.
Looking ahead, CSM is investing in artificial intelligence to improve both internal efficiency and customer experience. AI tools are being explored for operational productivity, service optimization, and fraud detection, areas where automation can support—rather than replace—human expertise.
“Artificial intelligence is an important tool for us,” García Díaz said. “It helps improve efficiency and service quality while supporting our workforce.”
For the first time since 2001, CSM recently distributed $4.1 million to policyholders, an action the company said reflects the cooperative philosophy that growth should directly benefit those who support the institution.
“When the cooperative performs well, that value is returned to our members,” he said. “That is central to who we are.”
Climate-driven disasters continue to pose significant challenges for insurers worldwide.
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