Insurance sector registers substantial growth

The insurance sector has grown from eight domestic companies in 2004 to 41 insurance and reinsurance ones, operating in 27 EU member states and other international markets, Finance Minister Tonio Fenech said.

Spekaing during the Insurance Rendezvous organised by the Malta Financial Services Authority today, the minister said that gross premiums written for last year were expected to go well beyond the 800 million euro mark, from just 250 million euro at the end of 2004.

Mr Fenech said the sector continued to grow despite the worsening international economic environment towards the end of 2008, the financial services sector has continued to experience the same rates of growth which it has been accustomed to in recent years.

He noted that the World Economic Forum’s Competitiveness Index 2008-2009 ranked Malta 34th (out of 134 countries) for financial market sophistication, with a banking system that was the 10th soundest in the world.

The latest edition of its Internal Market Scoreboard, produced by the EU Commission, placed Malta and Denmark in joint first position for having the lowest level of deficit in implementing internal market directives and a European Commission Report on Trade and Foreign Investment Indicators published on January 19, also placed Malta among the top five EU performers with respect to foreign direct investment inflows as a percentage of GDP.

Mr Fenech said he believed Malta is well positioned to continue making headway in this area since its advantages in this sector were many and varied, from a quality human resource to competitive professional and support services; an internationally accepted tax regime with an extensive network of bilateral treaties; a unique legal system that combines the continental civil law system with Anglo Saxon commercial law principles; an excellent IT and communications infrastructure, and air links with the main financial centres both in Europe and beyond.

However, he acknowledged the challenges posed by the international financial crisis and emphasised the need of vigilance against the impact which any further deterioration in the international situation may have.