Insurance Management & Administration...

The strong growth of Malta’s insurance sector is attracting increasing numbers of insurance managers and service providers, who recognise the profitable environment the country has to offer. Today, reputable insurance managers rank Malta as one of the best insurance domiciles within the EU.

Insurance Managers

Insurance management companies assist in the application process for a licence as well as the management and operation of captives, protected cell companies or cells therein, third-party insurers and reinsurers. Insurance management companies require a licence from the Malta Financial Services Authority.

Insurance managers usually carry out the following functions:

  • Assistance in feasibility studies
  • Management of cells in cell companies
  • Management of the insurance or reinsurance business, including premium and rate determination, underwriting, policy development, policy issuance and premium invoicing
  • Accounting
  • Cash management
  • Risk management
  • Claims handling;
  • Company secretarial services
  • Compliance services
  • Any other back-office work

Insurance Intermediaries and Brokerage Companies

Insurance intermediaries carrying out activities in Malta are required to register with the Malta Financial Services Authority and prove they are fit and proper persons with the necessary qualifications and comply with the relevant legislation and regulation. Brokers and other intermediaries can also benefit from the European single passport, in much the same way as insurers, which has added to the appeal of Malta with European intermediaries seeking international growth in a competitive jurisdiction.

Non-EU, including US-based, intermediaries seeking to tap into the EU insurance market have also discovered the potential of the domicile. Brokers can benefit from Malta’s PCC legislation, for example by converting a brokerage firm into a PCC offering cells to other brokerage firms. This structure provides brokers based in other EU countries with an opportunity to set up an operation in a cost-efficient jurisdiction. The opportunity Malta offers is for the front-end business to continue to be carried out through the existing company, for instance in the UK, while all business could be passed through a cell in Malta to benefit from lower operational costs.

Benefits of Insurance Management and Administration Services in Malta

  • Brokerage or Insurance Management through Cells: Foreign insurance brokers or insurance managers may establish cells in a broker- or management-protected cell company providing services such as office support, administration, EU passporting, insurance management and broker expertise.
  • Solid Outsourcing Infrastructure: A multilingual workforce and state-of-the-art telecoms make Malta the ideal location for the establishment of call centres for the outsourcing of claims handling or marketing functions.
  • Cost-Efficient Location: Malta has a lower cost structure, and well-trained workers are widely available

 

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