British Prime Minister Theresa May has announced that the Brexit plans to be presented in the British Parliament, and which will set the agenda for negotiations in the EU, will not include participation in the single market. Non-participation in the single market may result in the exclusion of the UK in the free movement of goods, services and workers within the EU and insurance businesses in the UK may lose their right of direct access to the single market
How can we help you?
As one of the leaders in the insurance legal sphere, with a dedicated team of insurance and reinsurance lawyers and experts, we at GANADO Advocates can work with you and provide you with the necessary support in the coming months in creating contingency plans, with Malta as an ideal jurisdiction.
Several UK insurance businesses have already started the process of possible contingency plans involving their European business to other member states, with Malta being one of the preferred Member States.
Accessibility, a stable political framework, excellent communication, well-educated English-speaking work force and a Mediterranean climate are some of the excellent attributes Malta has to offer as an ideal jurisdiction to relocate your business. Its appeal as an insurance jurisdiction is further supported through its:
Malta is the seat of various international (re)insurance undertakings, serviced by highly-qualified and highly-experienced professionals.
• The European Passport
(Re)insurance undertakings whose head office is in Malta are able to passport their Maltese licence into any EU/EEA Member State. (Re)insurance undertakings may opt to passport on a freedom of services basis or freedom of establishment (branch) basis. A branch of a non-EEA (re)insurance undertaking does not enjoy passporting rights.
• Re-Domiciliation and Mergers
Maltese law permits (re)insurance undertakings already registered and established in certain jurisdictions to re-domicile to Malta. Maltese law also applies the EU Cross-Border Mergers Directive.
• Portfolio transfer
Maltese Legislation provides for the transfer of business of insurance by means of portfolio transfer, both in relation to general business of insurance and life insurance business.
• A Low Cost Jurisdiction
Renowned to be a comparatively low cost jurisdiction in the EU and as a developing Financial Services centre, Malta is consistently topping the charts as one of the most cost-efficient domiciles for insurers.
• Availability of International Service Providers
(Re)insurance undertakings located in Malta may outsource management by appointing a licensed insurance management company to provide insurance management services. Malta offers an impressive array of international insurance managers who have set up operations in Malta, the Big Four audit firms as well as a number of local operators.
• The Protected Cell Company as an Alternative Model
Maltese legislation allows (re)insurance undertakings to be created as Protected Cell Companies (PCCs). A PCC is a regular trading company which can create one or more cells for the purpose of segregating and protecting the cellular assets from each other and from the assets of the company. This enables promoters to come together within the PCC framework and to share overhead costs whilst being protected from each other’s liabilities. Alternatively, a single promoter can write separate lines of business from separate cells, thus segregating each line of business.