Managed re-insurers domiciled in Malta have almost doubled since 2007 from 20 to 38 with total gross premium written locally for 2008 rising by 28 per cent to €512 million over the previous year, a report has shown.
The Malta Insurance Management Association's 2009 Managed Insurance Company Survey Report also shows that tax paid by insurers under management over the same period also doubled from €10 million to €20 million. Gross fee revenues generated by management companies in 2008 rose by almost 200 per cent to €3,734,600 from the €1,277,862 generated in the previous year. Total cash and investments balance for insurers under management increased by 59 per cent to €882,864,426.
MIMA secretary Matthew Bianchi told The Times Business that the survey is essentially used as a marketing tool - some managers have extensive internal networks within which to circulate the findings to attract more business to Malta. The survey is also presented at international trade events. Most names come to Malta from the UK, Germany and France. The sector in Malta currently employs over 80 professionals. Within the EU, Malta's main competing jurisdictions are Ireland and Gibraltar, to a certain extent. Outside the EU, Malta competes with Guernsey and the Isle of Man.
MIMA was established in 2006 and comprises all the insurance managers operating in Malta. The association aims to safeguard the interests of, and cultivating, insurance management expertise among its members, ensuring Malta remains a leading centre for insurance management services.
Dr Bianchi explained that MIMA was formed after a consensus among managers recognised that the association would lead to improving synergies in efforts to ensure the sustainability and growth of the sector.
"Most of the big names in captive insurance, whether partially or fully managed, like BMW, Peugeot, Vodafone, Munich Re and Renault, are here for the long-haul," Dr Bianchi pointed out.
There are currently 13 licensed managers authorised by the Malta Financial Services Authority: Abacus Risk Management Services PCC Limited; Alternative Risk Management (Malta) Limited; AON Insurance Managers (Malta) Limited; Ark Insurance Management (Malta) Limited; FirstUnited Insurance Management Limited; Heath Lambert Insurance Management (Malta) Limited; Heritage Insurance Management (Malta) Limited; HSBC Insurance Management (Malta) Limited; International Insurance Management Services Limited; Island Insurance Management Services Limited; JLT Insurance Management Malta Limited; Marsh Management Services Malta Limited; and Willis Management (Malta) Limited.
"These results are a clear indication that the international insurance market has become a substantial source of revenue in the financial services sector due largely to unrelenting efforts of all the licensed insurance managers to promote their services worldwide and the regulatory Aauthorities to ensure a consistent application of the laws and regulations," MIMA chairman John Tortell said in a statement.
"These results further confirm that the insurance management sector has continued to gain traction," Finance Malta chairman Kenneth Farrugia said. "The outcome of this survey is even compelling when one considers the economic and financial turmoil faced by the international financial services industry. Malta's insurance management industry has become an important contributor to the growth of the financial services industry, and the practitioners, regulator and government must constantly work hand in hand to ensure that Malta retains those pivotal competitive factors that have contributed to the growth achieved so far."