With double-digit annual growth and a market premium approaching 5 billion Euros of Life and General (re)insurance business, Malta punches above its weight when compared to some of its European counterparts. Insurance as a percentage of GDP is close to 5%. Financial services, in general, contribute approximately 12% to GDP and this is expected to grow to 15% of GDP by the end of 2022.
The Maltese insurance market has attracted several global or fortune 100 brands, such as PSA, BMW, Renault, Nissan, Munich Re, STARR, Fortegra, Aon, Willis, Marsh, Lloyds Brokers or cover-holders and others to establish a presence in Malta, using it as a platform to transact business in Europe by virtue of the EU Freedom of Services Directive and internationally.
The sector is regulated by the Malta Financial Services Authority. Licensed entities include composite insurance companies, life and general insurance companies, reinsurance companies, bancassurers, protected cell insurance companies, insurance cells, run-off and legacy companies, captive insurance companies, retirement scheme and fund administrators, reinsurance special purpose vehicles (insurance-linked securities), insurance brokers, protected cell insurance brokers, insurance agents, tied intermediaries, insurance managers and loss adjustors.
The Solvency II regime, constant IFRS development (the latest being IFRS9 and IFRS17), the adoption of BEPS and the DAC6 regime, within a highly regulated environment harmonized at EU level also increase demand for qualified accountants, auditors, actuaries, risk, compliance and legal resources with insurance acumen.