On the 22nd of December, 2014 the MFSA commenced a consultation process on proposed amendments to the Insurance Business Act (Cap. 403 of the Laws of Malta) and the Insurance Intermediaries Act (Cap. 487 of the Laws of Malta).
The proposed amendments reflect the transposition of the Solvency II Directive which introduces a new regulatory framework for insurance and reinsurance undertakings. Its main objective is to provide for adequate protection of policy holders and beneficiaries. In fact the Solvency II Directive lays down a solvency regime which is expected to result in even better protection for policy holders. This includes rules relating to the valuation of assets and liabilities, technical provisions, own funds, the Solvency Capital Requirement, the Minimum Capital Requirement and investment rules. It also provides rules for an effective system of governance to ensure adequate management of insurance or reinsurance undertakings. Moreover, the Solvency II Directive includes a new Chapter on the supervision of insurance and reinsurance undertakings in a group, which enables supervisory authorities to form a more soundly based judgment on their financial situation
The Consultation process shall run until the 23rd January 2015. Any comments and feedback to the proposed amendments to the Insurance Business Act and the Insurance Intermediaries Act are to be addressed to the MFSA.
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