Preparedness For Solvency II Under The Spotlight

Compliance with Solvency II, a crucial step for Malta's insurance community to maintain growth, has been tackled extensively by the Malta Risk & Insurance Report 2015. Solvency II, Europe's new capital adequacy and reporting regime for the insurance sector, will come into force in January 2016.

The report notes that important international insurance companies and corporations chose to domicile their third party writing captives in Malta was the ability to underwrite business across the European Union from this cost efficient base.

This is also the reason why it is hoped that the recently introduced RSVP legislation will attract investors and further insurers and reinsurers to the island to set up securitisation vehicles that can carry pan-European risks, not least to provide capital relief for smaller European insurers under the new regime.