Malta has gained a “significant brand” in captive insurance in Europe, according to Prime Minister of Malta Joseph Muscat.
Speaking at the Federation of European Risk Management Associations (FERMA) Risk Management seminar in Malta, Muscat said the most significant innovation for Malta has been the introduction of the protected cell company legislation for insurers, as Malta is the only EU member state to have that legislation.
He also noted that Malta has recently extended that legislation to securitisation vehicles and to reinsurance special purpose vehicles.
Muscat revealed that this innovation has served the country well, citing written insurance premiums, which have risen from €596 million to €3.8 billion.
He suggested that Malta is benefitting from the current economic climate, consumer confidence and higher tourist levels.
With the introduction of Solvency II at the beginning of this year, Muscat said that insurance companies have decided to be a part of the Maltese economy rather than sit back.
He said: “the economy is vibrating with success.”
Muscat commented: “The message is to keep oiling the machine so that Malta can become a powerhouse of the economy.”
“We have continued to build the insurance industry. Malta has advanced significantly.”
However, the Prime Minister also suggested Malta can do better, and that the best is yet to come.
He noted that there is no success in being hit with risk; there are still cyber risks, economic risks, climate change and financial stability risks that Malta will have to face.
According to Muscat, there are opportunities for new structures in years to come and, in Malta, regulators will work with the industry to become part of the solution, not part of the problem.
