Historic Malta – UK relationship a strong foundation for business-as-usual after Brexit says Building Block
The long-established relationship between the UK and Malta is of historic significance and should provide plenty of opportunities for insurance and financial services businesses following Brexit.
Paul Brierley, chief executive of Malta-based insurer Building Block Insurance PCC Ltd, said: “For the time being, our ability to trade in the UK is unaffected, and our future ability to trade within the EU will be unimpeded by Brexit. We are convinced there is potential to be gained from Malta’s unique status as a connection between the two markets.”
Brierley said that the Maltese Prime Minister, Joseph Muscat, had already given reassuring comments last week, noting that Malta could thrive as a gateway for business with the UK.
“For Building Block, we have contingency arrangements in place to ensure we can continue to do business, whatever the outcome of negotiations.” Malta’s economy is well-capitalised, and in the MFSA we have an efficient and effective regulator. We fully intend to continue to grow our UK business from a standing start to become a distribution partner of choice for brokers and affinities in the UK and Europe.”
“We have already reassured our distribution partners that it is business as usual for Building Block, and we are actively preparing the next phase of new product launches, expected during the early Autumn”
“While it is impossible to predict the future with absolute certainty, we can take comfort from Muscat’s statement, which identifies the fact that Malta will be taking a leading role in the next EU presidency, during which it will form part of the team negotiating the UK’s exit. This gives some reassurance that there will be a will to maintain trading relationships and the future prosperity of European economies.”
Brierley explained that Malta is the only full EU Member State which currently has the innovation of fully fledged Protected Cell Company (PCC) and Incorporated Cell Company (ICC) legislation. This legislation allows insurers to create a structure which is less demanding on capital, thereby reducing costs, which are ultimately shared across the company and its cells.
“It could be Brexit makes no difference to Malta’s support for captive and protected cell solutions. We expect that, once the immediate furore over Brexit has subsided, small to mid-cap companies will become a high growth area for Malta.”
“It could be with our help, they can compete against their larger counterparts by taking accountability and control for their own risk management strategy through a protected cell arrangement.”
For more information please contact: Ben Welsh, Certus Ltd: 07568 382040
Wednesdsay, 06th July, 2016