"The Maltese Government is determined to keep giving Malta's insurance sector the attention it requires to expand its contribution to the economy and increase its capacity to generate employment," the Minister for Finance Prof. Edward Scicluna said. Prof. Scicluna was speaking during the 5th Malta International Risk and Insurance Congress, which was held on Wednesday 11th June 2014 at the Westin Dragonara.
Prof Scicluna noted that in the non-life insurance sector, annual premiums have reached €1.6 billion, a full 15% increase on the previous year.
Furthermore while motor, fire and other property damage, accident and health classes represent the strongest areas of activity, substantial amounts of activity in other areas including aviation, marine and transport, as well as general liability, also account for a significant amount of business.
"Life insurance as well has been on the increase, and this sector now accounts for over €1 billion of annual premium, 80 percent of which is again down to international business," Prof. Scicluna said, adding that insurance intermediation, including brokerage and agency, as well as other ancillary services have also expanded considerably.
"The innovative component in our industry, coupled with the excellent qualities of our workforce, have enabled us to overcome many a challenge on the way to establishing ourselves in this competitive market," he said.
He noted what has been achieved so far has not been at the expense of regulation. "If anything, we are seeing more of this, as EU regulation continues to be transposed responsibly and applied with a firm hand."
Prof. Scicluna said the Government will continue to promote innovation while remaining vigilant against any practice that might compromise the financial stability of our operators or the interests of consumers.
"In developing our markets we must remain credible and responsible. This is paramount if we are to remain industrious and authoritative. Growth can only be sustained if scrutiny moves in tandem with innovation."
He added that the Government will be looking towards creating more training and specialisation opportunities in the sector to ensure that it can realise its maximum potential and that this is fully exploited to the benefit of all stakeholders and the national economy.
"Priority will continue to be given to implementing new legislation, not only through the timely transposition of EU legislation, but also through the continued expansion of the legal framework. In this respect, our policy objectives are three: ensuring good regulation, creating opportunities for growth, and attracting the capital to achieve it," Prof. Scicluna concluded.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
