The PCC offers benefits under Solvency II with reduced costs thanks to shared governance, risk management and reporting besides also potentially reduced own funds capital requirements.
Atlas PCC’s significant core capital surplus over Solvency II requirements provides additional support.
Malta has taken the PCC concept further to include Insurance Manager, such as Ark Insurance Management PCC Ltd, and Insurance Broker PCCs.
At the forefront of introducing new legislation and innovative structures such as the Reinsurance Special Purpose Vehicle (RSPV) legislation and Securitisation Cell Companies (SCC) Regulations, it has positioned itself as a key onshore domicile for Insurance Linked Securities (ILS) and CAT bonds.
As an onshore EU domicile of choice for a growing number of insurance operators due to its EU and OECD compliant financial and tax regulations, Malta has a reputation as an established finance centre with a flexible and responsive regulator.
Insurers based in Malta can provide insurance in other EU member states using their Malta license without having to apply for a separate license in each host territory. This means that insurers can benefit from having a Malta domicile, but with European coverage thus eliminating the need of having additional fronting insurers. Most EU countries would otherwise require domestic risks to be insured by a local insurance company or one based within the EU. Using a fronting insurer can be expensive and may incur not just fronting fees but also the cost of letters of credit requested as support by the fronting insurer. To some extent you also lose your intellectual property to the fronter.
The granting of a licence by the Maltese Financial Services Authority enables a Maltese captive or direct insurance company to write insurance business for which they have been authorised throughout the EU under the European Passport Rights for Insurance Companies by notifying the MFSA of those EU member state(s) in which the company intends to operate and the risks the company intends to cover.
The MFSA will issue a consent notice to the EU countries in which the Maltese insurer intends to issue policies within one month of receiving the completed notice of intention.