Malta Insurance Intermediaries
The Malta Financial Services Authority (MFSA) is responsible for authorizing and supervising insurance and reinsurance undertakings, insurance agents, brokers, managers, tied intermediaries, and ancillary intermediaries operating within the insurance sector.
Insurance intermediaries in Malta must adhere to the Insurance Distribution Act, related regulations, and the Insurance Distribution Rules and Conduct of Business Rules established by the MFSA.
The conduct of insurance business in Malta is governed by two key laws: the Insurance Business Act and the Insurance Intermediaries Act. Authorization to conduct insurance business in or from Malta requires approval from the MFSA, the competent regulatory and supervisory authority.
Maltese insurance legislation incorporates EU Insurance Directives, which regulate the establishment and operation of direct insurance, reinsurance, and activities of insurance intermediaries. Malta's EU membership allows licensed insurance companies in Malta to benefit from EU passporting rights, enabling them to provide services across other EU/EEA markets without additional licenses in those jurisdictions.
Authorization and Licensing of Intermediaries
The Insurance Intermediaries Act permits intermediaries to operate as companies. Alternatively, individuals can apply for inclusion in the brokers', managers', or agents' register maintained by the MFSA.
Local companies must fulfill specific requirements:
The company's scope must be limited to activities directly related to insurance intermediary operations, excluding all other commercial activities unless specified otherwise.
The intermediary must disclose requested information to the MFSA regarding individuals with any proprietary, financial, or other interests in or connections to it.
All qualifying shareholders, directors, controllers, and individuals managing or directing its affairs must be fit and proper to ensure sound and prudent management.
The intermediary must maintain adequate own funds appropriate for its business activities.
The intermediary must maintain professional indemnity insurance or a comparable guarantee for indemnification.
Foreign companies must provide additional details regarding registration or permission to conduct insurance intermediary activities at their head office location. They must establish a branch in Malta and designate a local representative.
Local companies applying for an insurance intermediary license must register one or more directors and the person responsible for insurance intermediation activities in the agents', managers', or brokers' register maintained by the MFSA.
For further information, please contact Neptune Fiduciaries at info@neptunecorporate.com or sales@neptunecorporate.com.
