This month's edition of Reactions, a leading international reinsurance magazine, looked at Malta's main selling points, and discussed with MFSA Chairman Prof Joe Bannister the latest development in the sector.
Reactions notes that Malta hosts around 60 licensed re-insurance companies in Malta. Of these, 10 are captives and 11 protected cell companies (PCCs) which may be used for reinsurance, insurance and captive business. These PCCs between them host 27 cells.
Commenting on impending reforms in this sector, particularly in association with Solvency II, Prof Bannister noted that the Malta Financial Services Authority (MFSA) engages with licence holders on an ongoing basis to assist in the preparation for the implementation of Solvency II through workshops, ad-hoc compliance visits or face to face meetings with directors and senior officials of licensed entities: "Broadly speaking the insurance market in Malta is on track to implement Solvency II by January 2016 and insurers are consistently seeking to improve the effectiveness of their risk management, controls, people and systems. Work to assist in the implementation across all three pillars continues."
Companies in Malta face the same challenges as their European counterparts and are working towards implementing Solvency II interim measures as well as keeping the 2016 deadline in their sights to ensure compliance across all three pillars. Reactions noted that the MFSA has seen an increased interest in PCC structures which provide flexibility, speedier set ups and cost effective solutions while being fully compliant with the Solvency II regulatory regime.
Asked about the strength of the Maltese jurisdiction, MFSA Chairman Prof Joe Bannister noted that "Malta believes in having a robust regulatory regime and a strong due diligence process. There is no policy of numbers and in fact we are quite selective in the licensing process. We believe in being pro-active not only in having regular direct contact with promoters and operators but also in developing innovative regulations compliant with the EU legislative framework. There are certain unique features in our insurance legislation, these include redomiciliation and the cell concept which has been extended from the original Protected Cell Company to include the RSPV and the SCC."
MFSA Newsletter - February 2015
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