Insurance Business in Malta is regulated under the Insurance Business Act, 1998 (“the Act”). The Act provides for the authorisation and supervision of insurance companies and the MFSA is the Competent Authority for the purposes of the Act. The MFSA’s approach is reputed to be ‘firm but flexible’. It encourages informal discussion at all levels with insurance company sponsors, insurance managers, applicants and other interested parties.
Every insurer is required to appoint
1. A ‘General Representative’, usually the company’s appointed insurance manager.
2. An independent and approved firm of auditors to draw up the statutory financial reports.
Following accession to the European Union, Malta licensed insurance companies are able to benefit from the European Union single passport for services and establishment.
Maltese law allows for the redomiciliation of insurance companies established in accepted jurisdictions to Malta thereby allowing a company to retain its legal personality throughout the process.
Protected Cell Companies legislation was passed in 2004 and the law allows the setting up of Protected Cell insurance companies and of cells within such companies. Each cell may be managed separately and assets attributed to such cells will constitute a segregated patrimony from the other cells. Incorporated cell companies legislation, catering for insurance companies, was enacted in 2011.