Insurance Law in Malta

There are two main laws regulating insurance and reinsurance activities and companies in Malta:

• -          the Insurance Business Act of 1998,
• -          the Insurance Intermediaries Act of 2006.

Insurance activities are also covered by EU Directives. All insurance companies are authorized and supervised by the Malta Financial Services Authority (MFSA).

The Maltese Insurance Business Act

The Insurance Business Act is the main regulatory framework governing the authorization and supervision of insurance and reinsurance companies in Malta. However, the MFSA also has the right to issue its own rules and regulations related to opening an insurance company in Malta. The law provides for several types of companies that can be registered:

• -          insurance and reinsurance principal companies,
• -          insurance intermediary companies,
• -          insurance management companies,
• -          insurance affiliated companies,
• -          protected cell companies,
• -          incorporated cell companies.

Our lawyers in Malta can provide you with information about each of the above type of company.

The Maltese Business Insurance Law also separates insurance companies into long-term and general insurance businesses depending on the products they provide. Long-term insurance companies may offer the following products:

• -          life insurance policies,
• -          annuities,
• -          marriage policies,
• -          health insurance policies,
• -          social insurance policies.

General insurance companies may provide accident, transportation, damage to property and liability insurance services.

The Insurance Intermediaries Act in Malta

The Insurance Intermediaries Law provides for the registration of individuals and companies supplying intermediaries insurance activities. The Maltese Insurance Law allows individuals and legal entities to register as:

• -          insurance agents,
• -          insurance managers,
• -          insurance brokers.

They are all required to register with the MFSA and must satisfy a certain number of conditions before being allowed to operate in Malta. These conditions include minimum capital and solvency requirements. They are also subject to various investment and disclosure rules.

For complete information about the Insurance Law and assistance in opening an insurance company in Malta you can request the services of our law firm. You can also contact us if you want to register as insurance intermediaries with the MFSA