Insurance in Malta

Malta is an attractive location in the European Union for the establishment of captive and other insurance and reinsurance businesses, both life and non-life. The island offers security and opportunity for those looking to enter the insurance industry.

FinanceMalta Sector Guide - Insurance & Reinsurance

Insurance Malta | FinanceMalta 

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Insurance in Malta

Since the early 1990s Malta has established itself as a renowned and stable financial services sector. The insurance industry was at the forefront of this development, with the Malta Financial Services Authority (MFSA) working in consultation with the local market to create an innovative jurisdiction aimed at encouraging the growth of insurance and reinsurance business, including captive insurance companies passporting their services throughout the European Union.

The insurance companies in Malta boast a mature domestic market with a compliment of life and non-life insurers and reinsurers as well as a burgeoning international captive sector. Despite the financial turmoil facing a majority of the world’s economies, confidence on the island remains strong. Local regulatory demand for transparency and compliance coupled with the intrinsic right of every insurer and reinsurer to passport its business throughout the EU indicates that the growth of the insurance sector is likely to continue.

Innovative Legislation

Malta is the only full European member state to offer Protected Cell Company (PCC) legislation, allowing companies to establish a cell within a PCC and write risk through that cell. The PCC set-up allows the start-up and ongoing regulatory burden of an insurance company to be spread throughout the owners of the various cells and the core of the PCC without putting any individual cell owners’ assets at risk from liabilities of the others. Cells are particularly attractive to medium sized corporate groups wishing to establish their own insurance vehicle.

EU Membership 

As a full member of the European Union, insurance businesses that incorporate in Malta can benefit from harmonised EU legislation and regulation with the benefit of an EU wide insurance licence which gives them the ability to passport business into other member states.  This is of particular advantage to those establishing a captive insurance business in Malta whose core business remains in another European jurisdiction.

The international market, with a predominant focus in the European Union has flourished substantially since Malta’s EU accession in 2004, with insurance companies in Malta providing services across 28 EU countries.

A Stable Regulator

The MFSA through its stable and consistent regulatory approach has ensured the growth of the insurance industry on the island. Throughout the licensing process of a potential insurance business, the MFSA encourages regular consultation sessions to ensure that both the interests of the business and compliance with all regulatory standards are met.  The Regulator is generally described as being open to the needs of insurance businesses in Malta but also firm in their approach to the regulation of the insurance industry.

Insurance Management Services

Malta has a good number of licensed insurance management companies, ranging from well known international names to more boutique establishments. These insurance managers have the knowledge and experience to assist those who are new to the captive insurance market and can advise on the formation of as well as the day to day operation of a captive insurance business. Moreover, all insurance managers are members of the Malta Insurance Management Association, an association aimed at ensuring the highest levels of training and conduct amongst its members.

 

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