1. LIFE INSURANCE IN
MALTA

2. Introduction

3. Introduction
 Demand for Life Insurance has increased –
mainly due to Bancassurance
 There are various types of Life Insurance
products
 Life Insurance is:
 Regulated by the MFSA
 A long-term commitment

4. Historical Background
1994-
Bancassurance 2008- Slight dip
concept was due to financial
introduced crises
1999-
Beginning of
unit-linked
products

5. Statistics
 As of January 2011- Malta’s
insurance market is ranked 60 in the
world
 Insurance density- Malta holds rank
33 world-wide with premiums per
capital of €657m, of which €430m is
life insurance.
 Market Penetration- Malta is in rank
34 with an overall rate of 4.7%, of
which 3.1% is life insurance

7. Why buy Life Insurance?
 It replaces an income in order to
leave financial security to your
beneficiaries who would not have to
make any financial sacrifices.
 There are different life insurance
policies depending on what your
particular needs are. Insurance
companies have several advisors
who can help you select the most
suitable products useful for you.

8. MSV Life – The Sunday Times
 MSV Life has designed a new product for
recently married couples that offers them free
life insurance of €10,000 for up to one year.
 A spokesperson explained that spouses
needed to consider the impact on widows or
widowers such as funeral expenses and debt
repayment. Otherwise how would a spouse
cope financially without the other?

9. Products of Life Insurance

10. Products of Life Insurance (1)
 Protection Products
 Savings Products
 Retirement Plan
 Loan Protection
 Investment Opportunities
We will be referring to Savings, Protection and Retirement Plan

11. Products of life Insurance (2)
Local Companies that offer life
Insurance:
 HSBC
 MSV Life
 Citadel
 Global Capital

12. Products of life insurance (3)

13. Products of life Insurance (4)
Savings
 One way of saving for one’s
future
 For specific goal or a traditional
long term investment attractive
plan
 With profits plan

14. Products of life Insurance (5)
Example: Citadel
In the case of the customer’s death
before maturity, the beneficiary is
paid:
1. The higher of Sum Insured +
2. The Policy Value

15. Products of life Insurance (6)
“Saving for your children’s future
education, buying a car, saving for
your dream holiday or for your
daughter’s wedding”
MSV Life

16. Products of life Insurance (7)
Protection
In the event of loss, what are you leaving
behind?

17. Products of life Insurance (8)
 In the event of death of the policy
holder, this helps the
beneficiaries of an insured in any
loss of income or even any
inherent payable loans.
 If the insured dies during the
policy term, a lump sum is
payable to the beneficiaries.

18. Products of life Insurance (9)
 Proceeds receivable by the
beneficiaries are untaxable in Malta.
 Offered in Malta as a decreasing life
cover (HSBC, Citadel and MSV life)
and a level term life insurance
(Citadel)
 Decreasing term Most Popular in
Malta and is not intended to leave
cash to the beneficiaries.

19. Products of life Insurance (10)
Retirement Plans
Main reasons why retirement plan are
gaining popularity
 Pension scheme in Malta are on a
decrease
 Problem for those who did not save for
the future

20. Products of life Insurance (11)
Retirement Planning:
“ Planning for the longest holiday”
Citadel

21. Products of life Insurance (12)
 Requires paying on a regular
basis
 Amount paid is not necessarily
equal every time
 Contribution is paid according to
the contract state and to suit the
current personal circumstances of
the policy holder

22. Products of life Insurance (13)

23. Products of life insurance (14)

24. Products of life Insurance (15)
In the event of death:
 Retirement plans pay back what
is right for you, even if the event
occurs
 “ …we will pay 101% of the value
of your policy” MSV Life
 Paid to the beneficiaries or even
to the trustees

25. Analysis of Questionnaire

26. Analysis of questionnaire (1)
Do you think about the importance of planning
for the future ?
90%
80%
80%
70%
60%
50%
40%
30%
20%
20%
10%
0%
Yes No

27. Analysis of questionnaire (2)
Which of the following best defines life
70% 64% insurance ?
60%
50%
40%
30%
20%
20% 14%
10%
1% 1%
0%
Financial Investment Home Loan Pension/ Saving for
protection for opportunity Retirnement children
their family Planning

28. Analysis of questionnaire (3)
Ranking : Most popular life insurance companies
in Malta
1. 3.
2. 4.

29. Analysis of questionnaire (4)
Do you own a life insurance policy?
60%
50% 50%
50%
40%
30%
20%
10%
0%
Yes No

30. Analysis of questionnaire (5)
35%
Life insurance products that are commonly
30% 29% purchased
25%
20% 19% 19%
16%
15% 14%
10% 9%
5%
0
0%

31. Analysis of questionnaire (6)
Do you think that it is vital to have such policy?
90%
80%
80%
70%
60%
50%
40%
30%
20%
20%
10%
0%
Yes No

32. Analysis of questionnaire (7)
Do you have any plans to purchase life
insurance in the future?
60%
53%
50% 47%
40%
30%
20%
10%
0%
Yes No

33. Analysis of questionnaire (8)
“Many argued that buying life insurance is not
necessary or worth doing, and is not worth
investing in. Some argued that for them life
insurance is not important” .

34. Analysis of questionnaire (9)
“The majority of those that already own a life
insurance policy said that they are well covered”

35. Analysis of questionnaire (10)
Reasons for having a life insurance policy
60%
53%
50%
40%
33%
30%
20%
14%
10%
0%
Means of Protection Means of investment Required by the lender

36. Analysis of questionnaire (11)
Is the premium paid adequate for the cover
given?
80%
70% 67%
60%
50%
40% 33%
30%
20%
10%
0%
Yes No

37. Analysis of questionnaire (12)
 The mainstream believe that buying a life
insurance policy will give them peace of mind.
 All of those having a life insurance policy
recommend it to their friends and colleagues.

38. Interview: Citadel
Insurance

39. Interview
 Offers saving plans and retirement
 Life insurance Loan protection policy 
Most sought life insurance product in the
Maltese Market
 Industry indicates a steady growth in the
Gross written premium each year.
 6.5% decrease in the Local Life insurance
market between the years 2010 and 2011

40. Regulation of Life
insurance in Malta

41. Regulation
 Regulated by the MFSA
 Element of distinction between
general and long term business in the
company’s name
 Maltese Solvency ratios
 The contribution of the Guarantee
Fund

42. Conclusion

43. Conclusion (1)
 Life Insurance mainly provides a peace of mind to the
policyholder; a promise to pay in the future when a
loss occurs.
 The Life Insurance market plays an important role in
the economy of the state:
 It is an important contributor to the nations’ GDP;
 Premiums collected form part of the national saving;
 Investments made are part of the national financial wealth;
 Claims paid by insurance companies form part of the national
disposable income.

44. Conclusion (2)
 Life Insurance is a vast growing sector.
The internet brought about certain
advances in simplifying transactions.
Although life insurance companies do not
use the internet quite as much as other
sectors do, it will not be long until this will
be a widespread practice.
 With all members of the EU forming a
single market, Malta expects more
business and competition from member

45. Conclusion (3)

46. Thank you for your attention!
If you have any questions, don’t
hesitate to ask
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