Aspects of non life insurance business regulation in the European Union and its impact on Maltese law

Abstract

This work analyses the most salient legal developments which radically changed the physiognomy of European Union Non Life Insurance Business to date, and the implications of these changes on the Maltese Insurance industry. It traces the historical development of European and Maltese Insurance Business. This work examines the Articles of the Treaty on European Union, which Treaty is deemed to lay down the foundations and also constitutes a major source for the later European Union Directives. This is followed by a thorough analysis of the Non Life Insurance Directives, as well as other Directives which influenced this development, or which were themselves influenced by the Non Life Insurance Directives. Along with European Law, the Maltese Insurance Business Act is scrutinised, its weak points are highlighted and its lacunae revealed. It identifies the areas which need amendment, or which have to be repealed or which must be provided for. It contains proposals for change modelled on European Union Law as well as on the recent Maltese Financial Services legislation. This work explores the "constitutional" aspect of Non Life Insurance Business, namely the legal mechanics and the juridical requirements which a person interested in investing in Non Life Insurance Business in the European Union or in Malta, must be aware of This thesis studies the nature of Insurance Undertakings in the light of the freedoms of establishment and services, including their activities and parameters, coupled by an examination of the powers and responsibilities of the Insurance Supervisory Authorities. The requirements and consequences of the issue, refusal or withdrawal of authorisation are reviewed in the light of the "Single Passport" philosophy underlying the Third Non Life Insurance Directive. The status of Non European Union Undertakings is examined too. The salient aspects of the Home Member State control and the relative financial supervision and prudential controls are analysed in the light of the most recent developments, coupled with an exposition of the relative position under Maltese law. This thesis criticises the impact which this development will have on the European and Maltese Insurance markets. It criticises also the different distribution channels which developed recently, in particular the collaboration between Insurance Undertakings and Banks, through arrangements and schemes such as "bancassurance", "assurfinance" and their consequences. It highlights also some fiscal problems in the European Union and Malta. It includes also practical and legislative suggestions for a new and modernised Insurance Business Law and a re-organised Insurance Business Market in Malta.