Malta could evolve into an attractive alternative for UK re/insurers looking to maintain their business in the European market post Brexit, Matthew Bianchi, who sits on FinanceMalta's Board of Governors, reportedly said at a roundtable discussion in London.
As reported by journalist Matt Sheehan from reinsurance.ws, Mr Bianchi noted that Malta has, in particular, benefited from the protected cell company (PCC) structure it offers, making the island an attractive jurisdiction following Brexit.
Malta is the only EU Member State which has a well-established legal regime regulating PCCs in place.
The Companies Act (Cell Companies Carrying on Business of Insurance) Regulations, introduced in 2004, enable insurers to carry on the business of insurance including the business of insurance manager, of insurance broking under the Insurance Intermediaries Act, reinsurance and of affiliated insurance (captive insurance) through the PCC structure as an alternative to the traditional set up of insurers, reinsurers or captives.
Mr Bianchi said that Malta is “the only jurisdiction, especially with Brexit happening, with PCC legislation on the cards,” adding that “the other jurisdiction is Gibraltar, but Gibraltar leaves with the UK.”
“It shows you how pliable and how innovative we are as a jurisdiction,” he said. “We don’t like to box ourselves into corners and say no to business.”
He cautioned however that while Malta may enjoy many opportunities in the near future, the country has not truly felt the positive impact from market disruption as a result of Brexit.
Mr Bianchi reportedly believes “we’ve gained as much as we’ve lost,” adding that he “think[s] Brexit is a bad idea for everyone, and that’s how we’re seeing it as a jurisdiction. We’re certainly not like vultures trying to take anything from others”.
He notes local labour pool challenges, saying it presents a barrier for larger entities looking to migrate to the island as they may need to fill hundreds of positions.
Despite this challenge, smaller operations have migrated to Malta, with Mr Bianchi observing that this is especially so for operators relating to the broker PCC model.