1. LIFE INSURANCE INMALTA

2. Introduction 3. Introduction Demand for Life Insurance has increased mainly due to Bancassurance There are various types of Life Insuranceproducts Life Insurance is: Regulated by the MFSA A long-term commitment 4. Historical Background 1994-Bancassurance2008- Slight dip concept was due to financialintroduced crises 1999-Beginning of unit-linkedproducts 5. Statistics As of January 2011- Maltasinsurance market is ranked 60 in theworld Insurance density- Malta holds rank33 world-wide with premiums percapital of 657m, of which 430m islife insurance. Market Penetration- Malta is in rank34 with an overall rate of 4.7%, ofwhich 3.1% is life insurance 6. Why buy Life Insurance? It replaces an income in order toleave financial security to yourbeneficiaries who would not have tomake any financial sacrifices. There are different life insurancepolicies depending on what yourparticular needs are. Insurancecompanies have several advisorswho can help you select the mostsuitable products useful for you. 7. MSV Life The Sunday Times MSV Life has designed a new product forrecently married couples that offers them freelife insurance of 10,000 for up to one year. A spokesperson explained that spousesneeded to consider the impact on widows orwidowers such as funeral expenses and debtrepayment. Otherwise how would a spousecope financially without the other? 8. Products of Life Insurance 9. Products of Life Insurance (1) Protection Products Savings Products Retirement Plan Loan Protection Investment OpportunitiesWe will be referring to Savings, Protection and Retirement Plan 10. Products of life Insurance (2)Local Companies that offer lifeInsurance: HSBC MSV Life Citadel Global Capital 11. Products of life insurance (3) 12. Products of life Insurance (4)Savings One way of saving for onesfuture For specific goal or a traditionallong term investment attractiveplan With profits plan 13. Products of life Insurance (5)Example: CitadelIn the case of the customers deathbefore maturity, the beneficiary ispaid:1. The higher of Sum Insured +2. The Policy Value 14. Products of life Insurance (6)Saving for your childrens futureeducation, buying a car, saving foryour dream holiday or for yourdaughters weddingMSV Life 15. Products of life Insurance (7)ProtectionIn the event of loss, what are you leaving behind? 16. Products of life Insurance (8) In the event of death of the policyholder, this helps thebeneficiaries of an insured in anyloss of income or even anyinherent payable loans. If the insured dies during thepolicy term, a lump sum ispayable to the beneficiaries. 17. Products of life Insurance (9) Proceeds receivable by thebeneficiaries are untaxable in Malta. Offered in Malta as a decreasing lifecover (HSBC, Citadel and MSV life)and a level term life insurance(Citadel) Decreasing term Most Popular inMalta and is not intended to leavecash to the beneficiaries. 18. Products of life Insurance (10)Retirement PlansMain reasons why retirement plan aregaining popularity Pension scheme in Malta are on adecrease Problem for those who did not save forthe future 19. Products of life Insurance (11) Retirement Planning: Planning for the longest holiday Citadel 20. Products of life Insurance (12) Requires paying on a regularbasis Amount paid is not necessarilyequal every time Contribution is paid according tothe contract state and to suit thecurrent personal circumstances ofthe policy holder 21. Products of life Insurance (13) 22. Products of life insurance (14) 23. Products of life Insurance (15)In the event of death: Retirement plans pay back whatis right for you, even if the eventoccurs we will pay 101% of the valueof your policy MSV Life Paid to the beneficiaries or evento the trustees 24. Analysis of Questionnaire 25. 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%YesNo 26. Analysis of questionnaire (2)Which of the following best defines life70% 64% insurance ?60%50%40%30%20%20% 14%10%1%1%0%FinancialInvestmentHome LoanPension/ Saving forprotection for opportunity Retirnementchildren their family Planning 27. Analysis of questionnaire (3)Ranking : Most popular life insurance companiesin Malta1.3.2.4. 28. Analysis of questionnaire (4)Do you own a life insurance policy?60%50% 50%50%40%30%20%10%0%Yes No 29. Analysis of questionnaire (5)35% Life insurance products that are commonly30%29% purchased25%20% 19% 19% 16%15% 14%10%9%5% 00% 30. 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% YesNo 31. 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%YesNo 32. Analysis of questionnaire (8)Many argued that buying life insurance is notnecessary or worth doing, and is not worthinvesting in. Some argued that for them lifeinsurance is not important . 33. Analysis of questionnaire (9)The majority of those that already own a lifeinsurance policy said that they are well covered 34. Analysis of questionnaire (10) Reasons for having a life insurance policy60% 53%50%40% 33%30%20%14%10%0%Means of Protection Means of investment Required by the lender 35. Analysis of questionnaire (11)Is the premium paid adequate for the covergiven?80%70% 67%60%50%40% 33%30%20%10%0%Yes No 36. Analysis of questionnaire (12) The mainstream believe that buying a lifeinsurance policy will give them peace of mind. All of those having a life insurance policyrecommend it to their friends and colleagues. 37. Interview: CitadelInsurance 38. Interview Offers saving plans and retirement Life insurance Loan protection policy Most sought life insurance product in theMaltese Market Industry indicates a steady growth in theGross written premium each year. 6.5% decrease in the Local Life insurancemarket between the years 2010 and 2011 39. Regulation of Lifeinsurance in Malta 40. Regulation Regulated by the MFSA Element of distinction betweengeneral and long term business in thecompanys name Maltese Solvency ratios The contribution of the GuaranteeFund 41. Conclusion 42. Conclusion (1) Life Insurance mainly provides a peace of mind to thepolicyholder; a promise to pay in the future when aloss occurs. The Life Insurance market plays an important role inthe 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 nationaldisposable income. 43. Conclusion (2) Life Insurance is a vast growing sector.The internet brought about certainadvances in simplifying transactions.Although life insurance companies do notuse the internet quite as much as othersectors do, it will not be long until this willbe a widespread practice. With all members of the EU forming asingle market, Malta expects morebusiness and competition from member 44. Conclusion (3) 45. Thank you for your attention!If you have any questions, dont hesitate to ask This power point can be accessed from:www.slideshare........