Insurance Law

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Due to Malta’s positive regulatory environment, its EU membership, English-speaking and professional human resources and its favorable tax regime, amongst other factors, several insurance law companies have moved to our shores to conduct insurance business in Malta and utilize it as a base to write insurance into Europe.

Insurance Law

The number of companies and the volume of business in the insurance sector is rapidly growing, so much so that the Maltese insurance sector has evolved from a handful of domestic insurance companies all the way up to insurance companies who operate across all EU member states.  Our insurance law sector includes insurance companies carrying out both general and long-term business, subsidiaries of major international insurance and reinsurance undertakings, Affiliated Insurance Companies (Captives) and Insurance Management Companies.

Insurance companies in Malta who have obtained a license from the MFSA (Malta Financial Services Authority) are governed by the Insurance Business Act and the Insurance Intermediaries Act respectively, may only carry out business in or from Malta. The MFSA is in conformity with the standards expected by the International Association of Insurance Supervisors (IAIS), and has signed a Multilateral Memorandum of Understanding (MMoU) in relation to the co-operation and information exchange with the IAIS after an application process which involves thorough screening and scrutiny of Malta’s legislative and regulatory framework.  Both the membership with the IAIS and the signing of the MMoU have strengthened MFSA’s position in the international network of supervisory agencies in the insurance sector.

Legislators in Malta have introduced innovative and flexible legal structures in the insurance law sector such as the Protected Cell Companies (PCCs) and the Incorporated Cell Companies (ICCs) which among other things allow the benefit of the segregation of assets and liabilities and which may be utilised to in the captive insurance market. The Affiliated Insurance Companies (AICs) under Maltese insurance law provide a number of concessions which are not otherwise applicable to insurance companies, hence catering for insurance companies’ specific needs.  The Continuation of Companies legislation also enables captives to re-domicile to and from Malta at the least possible cost.

After EU accession, Malta allowed insurance companies licensed in Malta to access the EU’s single market by writing directly into other EU/EEA markets without the need for additional licenses in the host of member states.  Passporting rights may be exercised provided that the insurance company is licensed and the host country regulator is notified by the home country regulator through a harmonised and streamlined notification procedure.

For any kind of financial services solutions, Chetcuti Cauchi stands as the firm of choice for every situation, offering an array of services under one roof.  Our practice provides project management solutions to Maltese and foreign clients who choose Malta as their Centre, HQ or branch of their insurance activity.  We also offer legal advisory services related to insurers, reinsurers, insurance agents, insurance brokers, captive insurance, the exercise of EU passporting rights, the re-domiciliation of insurance companies, various legal structures that Malta offers in the field of insurance and insurance managers and tied insurance intermediaries which seek to be authorised or enrolled under relevant Maltese Law. 

Initially, our firm provides assistance to coordinate meetings with the MFSA in order to discuss proposed insurance business, then we proceed to assisting clients in the drafting and completion of documentation required to obtain a licence in accordance to our insurance law. Our lawyers also provide specialised assistance in order to choose the most appropriate and tax-efficient legal structure in accordance to the envisaged nature, scope and extent of the proposed activity.

Once the license has been obtained, regular monitoring of the compliance with post-licensing requirements as established by EU directives which have been transposed into Maltese law, are carried out according to the insurance law.  Our team provides comprehensive compliance advisory service which ensures that all compliance matters are taken care of.

Our insurance law practice is also active in Cyprus, it represents both Cypriot and foreign-owned companies providing services including insurance companies, brokers, agents, sub agents and managers.

 



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Key Contacts

Dr Maria Chetcuti Cauchi

Senior Partner

+356 22056412

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