2 June 2014EMEA analysis

Directors Chambers extends offering to captives and PCC’s

Malta-based firm Directors Chambers is looking to expand into the insurance management space following its success in providing NED’s for fund managers.

Over the last decade, the importance of Malta as a European financial hub has been in a state of constant increase. Many global enterprises and insurance firms have chosen to set up their financial units on the island due to the convenient infrastructure and legislation offered there.

Being the first EU country to introduce comprehensive captive and PCC legislation makes Malta a popular starting point when it comes to establishing captive insurance companies. A particularly enticing prospect is the Continuation of Companies Regulations, which allows captives, subject to approval of the home regulator, to re-domicile both in and out of Malta- making it especially easy to move business around Europe.

Directors Chambers has good connections amid insurance management experts with decades of experience in emerging markets and fast-growing companies, giving them the edge in terms of correct analysis principles and risk portfolio pricing when the competition gets fierce.

The continuing growth of large global enterprises is creating the need for different types of risk transfer, so an increasing number of companies in the region are looking for captives to place their risks. Smaller and medium size companies can achieve the same effect as owning a captive company via establishing a cell in a protected cell company, but for substantially lower costs. These companies enable better administration of global risks, maintain optimal capital structures and of course better control on insurance costs for the owning company.

These new possibilities for risk transfer and the establishment of different types of risk carrying companies is a growing trend in Malta, as is the need for independent NED’s. Directors Chambers says it is willing to provide these services as soon as the demand arises, and look forward to start cooperating with many of the global players in the future.