FinanceMalta investor guide series
insurance & pensions
26
Reinsurance Companies in Malta Malta is also gaining a reputation as an ideal jurisdiction for risk and reinsurance solutions. In recent years, Malta has welcomed some of the most respected names in the industry. With more companies expected to identify a need for an EU location to serve their clients, the sector is poised for growth. Reinsurance is about transferring the risks of insurance companies to third-party organisations. In other words, it is insurance for insurance companies (including captives and cell companies). Spreading risks is at the core of insurance business and for insurance companies this involves spreading their own risks. Companies in Malta can either be authorised to carry on insurance and reinsurance activities or only insurance or reinsurance.
benefits of reinsurance in Malta Spreading of risk: Insurance typically comes at a guaranteed cost, and there is little incentive to improve risk management as there is no participation in the profitability of the insurance programme. Availability of a wide range of structures:
Reinsurance can be provided through a stand-alone reinsurance company, a reinsurance captive or cell companies.
Offices in a low-cost jurisdiction:
The EU ‘passporting’ regime allows insurance companies to establish themselves in any member state and offer services ‘crossborder’ into any other EU country as long as they follow a simple notification procedure and observe local legislation. Malta offers promoters wishing to reduce their expenses a tax-efficient environment and lower operational costs to set up and manage their insurance companies.
Highly-qualified staff are available: As an established finance centre, Malta has built up a pool of human resources, many of them have insurance-specific knowledge and qualifications.