“Malta’s maturity as an EU domicile is fostering excellence and high-level technical expertise, reinforced by the presence of several reputable multinational brands that have chosen to establish their captive insurance activity locally,” says Joseph Mifsud Grima, Chief Operating Officer at Fresenius Medical Care Global Insurance Limited.
Earlier this month, Mifsud Grima became the only Maltese professional included in this year’s Captive Review’s Forty Under 40 list.
“Beyond the personal satisfaction, I see this as validation of the technical environment we’ve built locally. Malta has developed a strong, credible ecosystem for captive insurance.”
“That ecosystem however,” he admits, “has not evolved without challenges. Malta’s reputation in financial services has faced scrutiny in recent years, testing the resilience of its institutions and professionals alike and it would be naïve to ignore the reputational dents.”
“However, the response, namely the administrative reforms and industry advocacy have shown that transparency and accountability are ultimately the only sustainable competitive advantages.”
According to him, Malta’s growth in the sector is underpinned by accumulated expertise and a service framework that extends well beyond fiscal incentives.
“Sophistication, flexibility and speed-to-market are difficult to replicate. These are strengths we have built over decades,” he notes.
Competing in a new era
Mifsud Grima believes that as competition intensifies among global domiciles, Malta can no longer rely on being the default European choice and that its future hinges on continuously refining its value proposition.
“A key differentiator remains the proactive approach of the Malta Financial Services Authority (MFSA). There is a genuine two-way dialogue and the regulator is accessible and communicative, without compromising rigour.”
“Cost efficiency remains relevant but this is no longer the primary driver. Rising inflation and accommodation costs present challenges, particularly for firms relocating staff. Yet Malta continues to offer a compelling balance because when you consider proportional solvency requirements and competitive service provider fees, Malta still delivers a strong value-to-quality ratio.”
And as the market’s sophistication continues to deepen, experienced professionals continue to help establish specialised insurance structures that attract high-quality international business.
“Innovation does not happen in a vacuum. It is built on talent and experience.”
Mifsud Grima noted how global volatility is reshaping the insurance landscape and how climate change, geopolitical tensions, and cyber threats are placing unprecedented pressure on insurers.
“In 2025, the cost of climate events alone exceeded $160 billion globally. Sustained losses at this scale will inevitably reduce capacity and drive up premiums. It is in this context that captive insurance becomes increasingly valuable. By retaining risk internally, organisations can shield themselves from volatile commercial markets,” he says.
“This isn’t about taking advantage of global downturns. It’s about providing structured, sustainable risk financing solutions.”
Mifsud Grima also considers AI and another transformative force, often framed as a replacement for human expertise.
“Informed judgment will remain irreplaceable”
“However, I see it differently. In underwriting and actuarial science, informed judgment will remain irreplaceable. AI’s real power lies in enhancing data processing and efficiency.”
He cautions, however, that the risks are equally significant.
“Deepfakes and identity manipulation pose systemic threats, reinforcing the need for industry-wide investment in training and safeguards.”
The rise of flexible structures
Protected Cell Companies (PCCs) have broadened access to captive insurance.
“Historically, captives were the domain of large multinationals. Cell structures now offer a pragmatic entry point, especially for smaller organisations. Beyond accessibility, PCCs are also being used strategically by mature captive owners to segregate risks across business lines or currencies,” he explains.
“Malta’s regulatory framework continues to evolve alongside these developments. Recent legislative refinements have strengthened capital requirements and adjusted ring-fencing protections, reinforcing the sector’s credibility.
“These changes strike a balance. They dispel any perception of regulatory shortcuts while maintaining proportionality,” he adds.
He mentions how the introduction of Small and Non-Complex Undertakings (SNCUs) and simplified reporting standards further support this approach.
“Captives are inherently different from traditional insurers. Recognising that through proportional regulation is essential for growth.”
Global pressures and future direction
According to Mifsud Grima, the next five years will be shaped by increased competition from both established and emerging domiciles. European countries such as France, Italy and Spain are strengthening their domestic frameworks, while broader trends point toward the re-nationalisation of financial instruments.
“Healthy competition is a positive force and Malta’s edge must come from how effectively we leverage innovation, both regulatory and technological. Technology, in particular, will be a defining factor. The shift toward digital integration in reporting, compliance and risk management is accelerating, and jurisdictions must keep pace.
“The question is no longer just about tax or regulation but about delivering a seamless, tech-enabled experience for both regulators and businesses,” he added.
“I look at how ESG considerations are moving from reporting obligations to core strategic priorities and how captives are increasingly being used to finance previously uninsurable risks, including those linked to sustainability.”
“This is a major opportunity. But to lead credibly, Malta must align with ESG principles at a national level. We need to ensure our own frameworks can withstand scrutiny.”
Despite the emphasis on innovation, Mifsud Grima stresses that people remain at the heart of the sector’s success.
“A jurisdiction is only as strong as its professionals. Technology can enhance what we do, but it cannot replace the integrity, judgment and expertise required to navigate global uncertainty.
“For Malta, the challenge and opportunity lie in combining technological advancement with a strong ethical and professional foundation. If we continue to innovate while investing in our people, Malta will not just remain relevant but can will thrive as a sophisticated, future-ready domicile for captive insurance.”
