The Malta Independent 14 April 2024, Sunday
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Insurance industry growing ‘in spite of increasing regulation’

Malta Independent Thursday, 12 June 2014, 18:21 Last update: about 11 years ago

At a conference for the insurance industry, Finance Minister Edward Scicluna argued that the time may be coming for the EU to analyse whether certain regulations governing the sector should be tweaked – or removed altogether.

Speaking at the opening of the fifth edition of the two-day Malta International Risk and Insurance Congress, Prof. Scicluna said that Malta offered a “fair and serious jurisdiction” for the industry, which, he said, has grown along with other financial services.

Malta is currently home to around 60 insurance and reinsurance companies, and last year, premiums in the non-life insurance sector reached €1.6 billion – an increase of 15% over the previous year. The life insurance sector registered more modest growth, but premiums nevertheless surpassed the €1 billion mark, the minister explained.

These figures are primarily due to overseas clients, which account for around 80% of the premiums paid.

Prof. Scicluna underlined that the sector’s achievements had not been registered “at the expense of regulation;” in fact, he added, regulation was increasing as Malta continued to transpose EU directives.

He recalled that as an MEP for four years, he had contributed to European legislation whose effect he was now seeing from the other side of the fence, acknowledging that such legislation had its drawbacks, including increased bureaucracy.

The minister expressed his hope that the time would come – as soon as possible – when the EU looks into this legislation and determines what needs to be tweaked, if not removed.

Prof. Scicluna insisted that maintaining credibility and responsibility were crucial, stating that continued growth would only be sustainable if scrutiny moved in tandem with innovation.

He said that while the government would continue to transpose EU laws in a timely manner, it would also seek to continue to expand the legal framework with three objectives in mind: ensuring good regulation, creating opportunities for growth and attracting the necessary capital to make use of these opportunities.

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