Overview and Regulation

Malta has no substantive insurance Code. The only statutes concerning insurance law in Malta are of a regulatory nature. Indeed, the insurance industry in Malta is regulated essentially by:

  1. the Insurance Business Act (Chapter 403 of the Laws of Malta); and
  2. the Insurance Intermediaries Act (Chapter 487 of the Laws of Malta).

The MFSA, qua the single financial services regulator, is the Authority responsible for the licensing, regulation, monitoring and supervision of insurance business in Malta. The Insurance Business Act and the Insurance Intermediaries Act operate in conjunction with the Insurance Rules issued by the MFSA. In granting an insurance business license, thereby authorising the undertaking of insurance business in and/or from Malta, the MFSA has strict regard to the margin of solvency, guaranteed funds and other technicalities pertinent to the industry, in default of which, the Authority has discretion to suspend or revoke a license once it has been granted.

Indeed, these laws regulate the establishment and operation of local bodies undertaking insurance business qua insurance principals, as well as, the activities of Malta-based insurance intermediaries, ranging from insurance brokers, insurance agents or tied insurance intermediaries, who conduct insurance business for local or foreign insurance principals.

Other than this, one can only find the Commercial Code provisions on marine insurance, which are really quite archaic. We have traditionally therefore relied on English law and practice as being the main source of our insurance law. Thus, in view of the above, navigating through the legislative implications in the insurance field may be a frustrating exercise.

At MA&A, we offer a full spectrum of insurance related legal services ranging from advice on insurance regulatory and contractual law, to insurance legal representation in litigation proceedings.