Insurance & Re-Insurance


The insurance industry in Malta is mainly regulated by the Insurance Business Act of 1998 and the Insurance Intermediaries Act of 2006 as well as by a number of directives issued by the Malta Financial Services Authority (MFSA).

Malta, offers a number of benefits within the insurance sector, making it a prime location where to set up such business. With its well-developed infrastructure and comprehensive set of laws in line with EU standards; Malta, an established financial centre and a member of the EU, hosts a good number of insurance companies, including reinsurers and insurance management companies.

Insurance companies set up in Malta can write insurance business anywhere in the EU and EEA; in this sense, Malta can serve as a basis from where insurance companies start and are managed for them to expand into the EU. Maltese insurers can insure any risks directly or indirectly as re-insurers.

Setting up Captive Insurance

A company wishing to carry out insurance business in and from Malta is required to submit an application in writing to the MFSA. A company wishing to carry out a combination of long-term and general business would be required to satisfy the MFSA that the long-term business is restricted to reinsurance and that the general business that will be carried out by the company will be restricted to accident and sickness classes or to any class or part of a class of business within that group and provided that it shall maintain separate management for each one.

The MFSA performs an ongoing regulating function in respect of insurance companies whilst they are in operation to ensure the maintenance of solvency margins, guaranteed funds and technical provisions.

Insurance Business Providers

Maltese law provides for the setting up of a number of insurance companies,such as local insurance principals, insurance brokers, insurance agents carrying on business for foreign and local insurance principals and insurance sub-agents

In Malta a Captive insurance is called an Affiliated Insurance Company fund must restrict its business to risks originating with shareholders or connected undertakings; indeed it is subject to a special licensing framework. Affiliated Insurance Companies in Malta are required to meet a number of standards transposed from European Law: they must, among others, possess their own funds, maintain a margin of solvency and maintain equalisation reserves. Affiliated companies are allowed to draw up accounts in an abridged form. Registration of a captive insurance is processed within a statutory period of three months and may take the form of a protected cell company.

Insurance Intermediaries

The Insurance Intermediaries Act 2006 which implements Directive 2002/92/EC provides the regulatory framework for the registration of insurance intermediaries and for the carrying out of insurance intermediaries activities.Insurance intermediaries activities may be carried out by both individuals or legal persons.

For further information, kindly contact Dr Christian Farrugia.

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