Malta Insurance Industry – Governance, Risk and Compliance
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The Malta insurance market report is the result of extensive research into the insurance regulatory framework in the country. It provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident & health, marine, aviation, and transit insurance.
The report also specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. It also gives insurers access to information on prevailing insurance regulations, recent and upcoming changes in the regulatory framework, taxation, and legal system in the country. Furthermore, the report includes the scope of non-admitted insurance in the country.
What are the market dynamics in the Malta insurance industry?
The Malta Financial Services Authority is the competent authority formed by the Ministry of Finance following the main insurance regulatory acts in Malta. The MFSA is responsible for regulating the activities of Maltese insurers, reinsurers, insurance intermediaries, captive insurance companies, protected cell companies (PCCs), and incorporated cell companies (ICCs). Some of its primary responsibilities include protecting the consumers or policyholders of insurance contracts, regulating all authorized companies in the Maltese financial services industry, licensing companies involved in banking, insurance, investment, and stockbroking business, and so on.
What are the types of licenses issued in the Malta insurance industry?
The different types of insurance licenses issued in the Maltese insurance industry are insurance license, composite insurance license, reinsurance license, and insurance license for intermediaries.
Insurance license in Malta
Long-term and general insurance licenses can only be obtained from the MFSA, following the Insurance Business Act 1998. According to Article 7 of the act, the MFSA is responsible to provide authorization to both domestic and foreign applicants for all classes of long-term and general insurance businesses in Malta.
Composite insurance license in Malta
Licenses for composite insurance businesses are not permitted in the Maltese insurance industry. However, composite reinsurance is permitted. To conduct a reinsurance business, a company should be authorized to do so. Intermediaries acting on the behalf of insurance companies must also obtain authorization.
Reinsurance license in Malta
Reinsurance companies should also get authorization to conduct business in Malta; however, these can carry on both long-term and general reinsurance. Reinsurance companies must be established in the form of a body corporate or a European insurance undertaking or a limited liability company (set up as an incorporated cell company or protected cell company). Additionally, foreign reinsurance companies established and licensed to operate in any EU or EEA member states are permitted to operate reinsurance business in Malta without obtaining a prior license from the MFSA.
License for insurance intermediaries in Malta
An individual or a legal person should be registered by the MFSA to act as an insurance agent, broker, or manager in Malta. Under the Insurance Intermediaries Act 2006, the MFSA provides authorization to the insurance agents, insurance brokers, and tied insurance intermediaries.
Malta insurance industry, by license type
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Which other associations oversee the Malta insurance industry?
The key associations that oversee the Maltese insurance industry are the International Association of Insurance Supervisors (IAIS), European Insurance and Occupational Pensions Authority (EIOPA), Federation of European Risk Management Associations (FERMA), Ministry of Finance (MoF), and Financial Services Tribunal (MFST).
International Association of Insurance Supervisors
The IAIS is a membership-driven global organization that represents insurance regulators and supervisors of more than 200 jurisdictions in over 140 countries. The IAIS formulates and issues various global insurance principles, standards, and guidance, provides training and support on issues related to insurance supervision, and organizes meetings and seminars for insurance supervisors. It works closely with other financial sector standard-setting bodies and international organizations to promote financial stability.
The primary objectives of the IAIS are to promote effective and globally consistent supervision of the insurance industry to develop and maintain fair, safe, and stable insurance operations for the benefit and protection of policyholders, and to contribute to global financial stability.
European Insurance and Occupational Pensions Authority (EIOPA)
The EIOPA, an independent advisory body to the European Parliament and the Council of the EU, is a part of the European System of Financial Supervision. The main responsibilities of EIOPA are to support the financial system stability, support the transparency of markets and financial products; to protect policyholders, pension scheme members, and beneficiaries of all EU Member States. Additionally, EIPOA is responsible for the preparation of the new supervisory regime for insurance and reinsurance undertakings in the EU (Solvency II).
Federation of European Risk Management Associations (FERMA)
The FERMA is a member of the International Federation of Risk and Insurance Management Associations (IFRIMA). FERMA aims to lead and enhance the effective practice of risk management, risk financing, and insurance in Europe. Some of its main objectives include monitoring new regulations and standards; detecting early issues which can impact the risk management and insurance sectors; setting up surveys and benchmarks to identify and share current practices, and so on.
Ministry of Finance (MoF)
MoF is the main regulatory authority of the insurance industry. It ensures that the insurers and intermediaries comply with all the stipulated rules and regulations of the two main insurance acts and their subsidiary legislation.
Financial Services Tribunal (MFST)
MFST was established under the Banking Act 1994 and was later given insurance regulatory responsibilities. The Insurance Business Act XVIII of 1998 gives it the responsibility to make decisions on applications for transfer of long-term insurance business and to receive payments of application costs or charges. The Tribunal is also responsible for hearing appeals of decisions by the MFSA in cases of misuse of application or mistreatment of discretion.
Malta insurance industry, by associations
To know more about key associations, download a free report sample
Market report scope
Key license types | Insurance license, composite insurance license, reinsurance license, and insurance license for intermediaries. |
Key associations | International Association of Insurance Supervisors (IAIS), European Insurance and Occupational Pensions Authority (EIOPA), Federation of European Risk Management Associations (FERMA), Ministry of Finance (MoF), and Financial Services Tribunal (MFST) |
Scope
- The report covers details of the insurance regulatory framework in Malta.
- The report contains details of the rules and regulations governing insurance products and insurance entities.
- The report lists and analyzes key trends and developments about the country’s insurance regulatory framework.
- The report analyzes the rules and regulations about the establishment and operation of insurance businesses in the country.
- The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to Buy
- Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country
- Gain insights into the insurance regulatory framework in Malta.
- Track the latest regulatory changes and expected changes impacting the Maltese insurance industry.
- Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
- Understand key regulations and market practices about various types of insurance products.
Table of Contents
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Frequently asked questions
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What are the key license types in the Malta insurance industry?
The key license types issued in the insurance industry in Malta are insurance license, composite insurance license, reinsurance license, and insurance license for intermediaries.
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Which are the key associations overseeing the Malta insurance industry?
The key associations overseeing the insurance industry in Malta are the International Association of Insurance Supervisors (IAIS), European Insurance and Occupational Pensions Authority (EIOPA), Federation of European Risk Management Associations (FERMA), Ministry of Finance (MoF), and Financial Services Tribunal (MFST).
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