Issue 3 2021

Island Success As the cooperative movement enjoys a successful reputation and great credibility across Puerto Rico, the establishment of Grupo Cooperativo Seguros Múltiples (GCSM) as a cooperative company built to serve the economic and social development of the island has been well received. Amongst its many subsidiaries is a leading insurance company, the Cooperativa de Seguros Múltiples (CSM) which, like its proprietor, is driven by a devotion to the wellbeing of Puerto Rico through its delivery of world-class insurance services and products. We have put together a profile of the award-winning firm that is making its mark on the Puerto Rican market. We are pleased to receive the recognition conferred as Puerto Rico’s Business Continuity Program of the Year 2020. This recognition arises from the effort to establish a fully functional continuity program following the best practices. Since 2017, we had started with the redesign of this business continuity program following the best world practices established by the Disaster Recovery Institute International (DRII) and the Business Continuity Institute (BCI). Besides, to develop significant changes in the program’s governance, we assign the internal and external resources necessary to establish efficiency in implementing business continuity strategies to preserve the operational continuity of our critical business processes offered by the group. Implementing these strategies has facilitated our operational continuity in the face of significant incidents such as Hurricane María (2017), Earthquake 2020, and the current pandemic (COVID-19). We are honored by this international recognition. Our corporate efforts has allowed us to fully comply with our business responsibilities in the Puerto Rico Insurance Industry. Organized under the General Law of Cooperatives of Puerto Rico (Law No. 239 of 2004), Grupo Cooperativo Seguros Múltiples (GCSM) was created to serve the cooperative sector of the island and contribute to the economic development, businesses, and social wellbeing of its community. Operating as a “Structure of Control of Insurance Companies or Insurance Holding Company System” under Chapter 44 of the Puerto Rico Insurance Code (Law 77 of June 19, 1957, 26 LPRA 4401 and the following), the main subsidiary of the group is the Cooperativa de Seguros Múltiples (CSM) which adheres strictly to the provisions of the Chapter 34 of the Puerto Rico Insurance Code. This branch works alongside CSM Investors, another of the Group’s subsidiaries that operates as a Mortgage Bank and Holdings. Together, the group seeks to deliver high quality insurance products, premium financing, mortgage and telemarketing services, auto parts and real estate management to communities across the cooperative sector in a clientele that numbers more than 600,000 customers across Puerto Rico. Leading the 200 or so insurers operating on the island – twenty of which are categorized as domestic, 130 as foreign insurers, and fifty in surplus lines – CSM ensures it is constantly abreast of its competition, recognizing that the maintenance of its high standards in service are what distinguishes CSM. Moreover, according to the group, the Puerto Rican insurance market does not meet the mark on the economic principle of ‘perfect competition’, due to its lack of lots of buyers and suppliers, compounded by the single price. As a result, a significant number of producers are able to act on the market without any of them having any particularly dominant control in a form of monopolistic competition that is not particularly productive. The cooperative model, however, is one that achieves great success and acclaim in Puerto Rico, with more than a third of the island’s population being a member of one cooperative or another. Consequently, CSM’s positioning as a cooperative company with a strong service has been the defining feature of the firm in the insurance industry for years, Oct20245 enabling it to achieve new heights of success and establishing itself at the pinnacle of the property insurance and contingency sector of Puerto Rico. Guided by the principles of a cooperative and utmost respect for the firm’s values, CSM has become synonymous with a culture of superior and honest service that has been recognized nationally with a myriad of awards. In October 2020, for instance, the Puerto Rico Sales and Marketing Association recognized CSM’s in their renowned brand study “Marcas que Marcan” as the Auto Insurer with the Highest Recall (Top of Mind), revalidating its leadership in the industry. Similarly, the Brand Asset Valuator 2020 accredited CSM as the Property and Casualty Insurer with the Highest Esteem and Brand Recognition. Yet while the awards are a stunning testament to the work of CSM, it is undoubtedly the mission and vision of the firm that continues to drive the group onwards. Ultimately, GCSM seeks to contribute to the economic development, business and social well-being of Puerto Rico, using its subsidiaries to provide top quality services at a fair, equitable and reasonable price, based on ethical values, philosophy, and the cooperative principles. In doing so, the firm seeks to not only enhance its service and product offering, but also deliver excellent social responsibility programs, cooperative education, and excellent labor environments. At the same time, GCSM aspires to efficiently maintain its subsidiaries as well-capitalized assets to maintain the trust of reinsurers, the insured, and stakeholders. In keeping with the philosophy of a cooperative, CSM relies heavily on its people, operating on an organizational infrastructure that centers around profound respect for human dignity. Other key values emanate from here, such as inclusion, integrity, ethics, prudence, responsibility, teamwork, and social and environmental awareness. Building on these strong foundations, CSM is able to provide its team with a robust training and development program that comprises workshops and team activities designed to develop personal and professional skills. With additional mentoring and coaching initiatives such as the