Changes and developments in the industry of affiliated insurance companies : a comparative study

Abstract

The concept of Affiliated Insurance Companies is not a novel one, having been in existence for several years. From a local perspective, however, affiliated insurance business is an innovative feature that has made a relatively less marked appearance over the last thirty years. After a somewhat uncertain start, Affiliated Insurance Companies are showing an ever-increasing interest in Malta as an insurance hub, attracted not only by a number of fiscal incentives but also by the country's regulatory framework In this respect, a legislative framework drawing heavily on EU Law seems to be yielding fruit. The reasons behind this drastic transition as well as the changes and developments that the new regulatory regime has brought about and which have proved decisive in winning over several direct investors are analysed in some detail. Furthermore, this dissertation compares the Affiliated Insurance product being offered by Malta to that of other competing jurisdictions. These jurisdictions are examined in some detail to draw out the most important features of both offshore and onshore regimes. This analysis is carried out through a comprehensive comparative study between the older offshore regime of the late 1980s and the framework and principles of current practices. A critical appraisal of the new regime, building on the findings of the comparative study, is then attempted.