MFSA Revises Bancassurance Policy In The Light Of ECJ Judgment

On the 16^th April 2025, the Malta Financial Services Authority (MFSA) has issued a Circular introducing key regulatory changes affecting bancassurance in response to a 2022 European Court of Justice (ECJ) ruling.

In the past, legal entities like banks and employers that provide group insurance (also known as "master policies") —where these entities act as policyholders and beneficiaries and have the ability to add additional beneficiaries—were not considered to be engaged in insurance distribution. As a result, they were not required to be licensed as insurance intermediaries. However, the ECJ's decision in Case C-633/20 redefined the scope of "insurance intermediary" to include entities offering customers voluntary membership in group insurance policies in return for remuneration which entitles such customers to insurance benefits.