A study of the impact of Brexit on the Maltese insurance market

Abstract

The largest European insurance market was, and most probably still is, Lloyds of London, and with Brexit, it would be remiss to discuss the effect this would have on the European insurance market. This study will start with an overview on Brexit, detailing the political climate and the initial effects this decision had on the insurance market. However, this study will not only examine the UK market but also the European market, touching also on the US market, with the intention to provide the reader with a general overview of the situation. The author will narrow down his investigation to Malta, to understand whether after four years, the country is still in a position to exploit any UK business, and whether the local industry has the adequate workforce to do so. Research data was collected through open ended questionnaires with locally registered Insurance Undertakings and Broking operations, whose results were collated in a thematic form and analysed accordingly. The results show that the effects of Brexit were negligible and that the market seeks growth through other means. On the other hand, the workforce element is very limited, and the local industry needs a strong injection of younger professionals to service the market. Following this study, it is also evident that further research on the local market is required to enhance the function of the industry, attract new entrants, and promote growth.