Malta: FERMA European Risk Management Seminar Event Roundup - Malta 2016

Malta has made its mark on the European risk management community and captive industry, by hosting this year's Federation of European Risk Management Associations (FERMA) risk management seminar. The biennial seminar takes place in alternate years from the FERMA forum exclusively for risk managers, where they have the opportunity to focus on their professional interests and concerns. Big topics included digital risk, resilience, business continuity, insurance programmes and captives, leadership as well as recognition of the risk management profession. A short video showing the event's atmosphere can be found at

Speaking on the opening day of the seminar, Malta's Prime Minister Dr Joseph Muscat said that Malta has gained a strong reputation as an insurance domicile in Europe. Insurance premiums written on the island have increased from €596m to €3.8bn over the last decade.

This has been driven by innovative regulation such as PCC legislation, the only full EU member state to have it. Dr Muscat also noted that Malta has recently extended legislation to securitisation vehicles and reinsurance special purpose vehicles, making it the first EU member state to adapt the cell structure for insurance-linked securities (ILS) transactions. He said that Malta's economy is vibrating with success and predicts 2016 will be another year for growth of insurance companies. Dr Muscat added that in Malta, regulators will continue to work with the industry to create new structures enabling further opportunities.

Keynote speaker and Swedish entrepreneur Ola Ahlvarsson combined his hands on experience of building entrepreneurial businesses with a mission to convey knowledge and a belief that every organization can and should be entrepreneurial, since if they stand still they can only go backwards. Ola expressed that intrapreneurship is the most important form of entrepreneurship. Intrapreneurship means giving employees authority to act as entrepreneurs within the company, being allowed to take a degree of risk to develop new products and services.

On the opening of the seminar's second day, Malta's Minister for Finance Professor Edward Scicluna stated that while risk needs to be carefully managed, risk aversion in itself can potentially stifle investment especially in relation to emerging markets. Minister Scicluna recalled how the European Parliament had devised strict financial and anti-money laundering regulations in order to avert banking crises in the future, however, in doing so, these same regulations are so tight, that they can hinder investments.

There is rising demand for capital market risk transfer solutions, according to an expert panel held during the seminar, as ILS markets mature and appreciation of the potential offered by this uncorrelated risk by pension and hedge funds grows. Several examples of how these are being used by corporates and government entities were discussed. One such case was non-damage business interruption cover for a theme park in Tokyo, where cover was triggered when an earthquake occurred. The pay-out was parametric, as in the majority of such structures, rather than indemnity-based and depended upon the scale of the quake within specific zones measured by the Japanese earthquake agency. Such cover would be hard to find in the traditional insurance market.

Malta enabling innovation in captives and cells

MARM organised a session offering delegates practical insight from two perspectives as to how local insurance companies have navigated through Solvency II and benefited from it.

Dorothy Kim Vella, who heads the risk, internal control and compliance function of RCI and is also a MARM board member, set out how an insurer owned by a motor vehicle financing company and domiciled in Malta has approached Solvency II implementation and described the transformative process resulting in optimised processes, stronger governance and reinforced risk awareness. Participants were taken through the maturity cycle of the company's risk management framework resulting from its obligations under Solvency II.

Later, Ian-Edward Stafrace, MARM president and Atlas group's chief risk officer, discussed the use and implementation of protected cell structures through real live examples. Stafrace explained that a PCC is a single legal entity with a non-cellular core. Although it is licensed like any normal insurance company, owners outside of the company can set up their own ring-fenced cells within that company. While each cell's assets are always protected by law from liabilities of the core or other cells, as part of a single legal entity such benefit under all Solvency II pillars from reduced capital requirements and significant cost burden sharing on governance and reporting. Due to Malta's positioning in the EU and

direct access to the single market, Stafrace said that a number of cells being set up in Malta are also tapping into consumer business for diversification and additional revenue. He also used an example of a captive cell model, wherein a supermarket that owns a large fleet of vehicles created a cell to insure its motor fleet directly, without the need of a fronting insurer.

Benchmarking Survey: Risk managers developing strategic role and wider view of risks

The seminar also served to publish and discuss FERMA's 8th biennial European Risk and Insurance Survey. Amongst its findings it concluded that European risk managers are taking a more strategic role in their companies. The President of FERMA Jo Willaert commented: "From this survey, we see that risk managers are moving into a position where they are helping embed risk management into the business model and culture of their organisations. They are taking an enterprise wide vision of risks, including the wider business environment, and the majority report to a chief officer or the board." The report and related presentations are available at:

The programme encompassed additional sessions within the framework of the conference themes: leadership, knowledge and education.

The risk manager-only roundtable workshops, moderated by FERMA board members and other risk managers, covered five very topical issues:

  • Financial transparency including implications for captives
  • Risk management in small and medium sized companies and how it relates to large corporates
  • Enterprise Risk Management (ERM) and risk leadership
  • Digital risks across a wide spectrum
  • Resilience and business continuity

The UK risk management association Airmic organised a session on risk leadership and the risk manager's professional contribution on the boardroom agenda. It set out some of the issues and offered practical ideas and suggestions on how risk managers can seize opportunities. The session focused on how risk management can be embedded in the business model of the organisation and the importance of risk culture. It introduced models, tools and techniques designed for the risk manager developed in partnership with colleagues from other professions and in consultation with those who have a seat at the boardroom table.

An interactive workshop organised by the Belgian risk management association BELRIM challenged risk managers, representing the executive board of a fictional company, to respond to a live simulated major incident and its consequences. It helped demonstrate in an unconventional way the challenges posed by technology risks and connected risks such as intellectual property and reputation, and showed the benefits of scenario testing to build resilience.

First rimap® examination

The first examination under FERMA's professional programme rimap® were held in Malta during the seminar. 18 risk managers including 4 Maltese passed and were presented the first qualifications by examination. Michel Dennery, chairman of the rimap® programme, said: "The first certified risk managers will be seen in the future as the pioneers in the new standard for the risk manager's profession." Rimap® provides independent confirmation of the professional competences, experience and standards of individual risk managers. The examination is rimap®'s latest milestone following accreditation of the first six education programmes, which supported by MARM included the University of Malta's Bachelor of Commerce (Honours) in Insurance and Risk Management. Isabel Martinez Torre-Enciso, vice-president of FERMA and member of the rimap® steering committee commented: "The next step is to refine the rimap® examination on the basis of experience so that it reflects the complexity and diversity of the profession, and then to make the examination available for as many risk managers as possible".

Jo Willaert closed the seminar by inviting attendees to the FERMA Risk Management Forum 2017, which will be held in Monte Carlo between 15 and 18 October next year where the theme will be 'Risk Managers in Pole Position' conveying images of risk, performance, anticipation, prevention, crisis management, team spirit and new technologies.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.