Malta is seeing a “revival” in the market and and renewed interest in captives, according to the Malta Financial Services Authority (MFSA).

Speaking exclusively to Captive Review in the Malta 2021 report, head of insurance and pensions supervision at MFSA Ray Schembri said that one of the big trends is directors and officers coverage.

“The interest has centred around financial lines including professional indemnity and directors & officers coverage which could be due to a reduction in capacity and the fact premiums have increased dramatically,” Schembri said.

“As a result of these factors, the big corporates are, quite naturally, looking towards captive solutions. Apart from that, we’ve also seen additional interest, likely due to hardening market conditions, on the property damage side. In this case corporates are again looking at risk retention vehicles in the form of captives.”

The MFSA said that the other big trend they saw in 2020 was increased interest in protected cell companies (PCCs).

Read the full report for free here, featuring exclusive interviews and comment pieces from MFSA, Atlas Insurance PCC, Finance Malta, Curmi and Partners, TMF Group and Bee Insurance Management.