MFSA Warns Insurers on Data Quality, Pushes for Tighter Controls on Regulatory Returns
The MFSA has put insurers on notice over data quality in regulatory returns, demanding stronger controls and better governance.
The Malta Financial Services Authority has warned authorised (re)insurance undertakings to strengthen controls around Regulatory Financial Returns, signalling that data quality remains a top supervisory priority.
In a Dear CEO Letter published on 3 September 2026, the regulator addressed chief executive officers, chief financial officers, and compliance officers directly. The letter makes clear that accurate, complete, and timely reporting is essential for effective supervision and aligns with European Insurance and Occupational Pensions Authority expectations.
Firms are generally submitting quarterly returns within the required timeframe. But several insurers told the regulator that the five-week submission deadline is a stretch, particularly where resources are limited.
The MFSA identified areas where controls need improvement. It expects greater consistency across regulatory submissions, a reduction in non-blocking errors in Quantitative Reporting Templates, and adequate resourcing for reporting teams.
Spreadsheets drew particular scrutiny. The regulator warned that excessive reliance on spreadsheets increases the risk of human error and creates business continuity challenges. Where spreadsheets remain necessary, robust reconciliation procedures and appropriate safeguards must be in place.
The four-eye principle was also flagged as inconsistently applied. Insurers must maintain a clear and documented preparer-reviewer process, with evidence that regulatory submissions are independently reviewed before being filed.
The inspections were carried out under Chapter 8 of the Insurance Rules on Financial Statements and Supervisory Reporting Requirements, issued under the Insurance Business Act.
The MFSA also emphasised the need for up-to-date, version-controlled finance procedure manuals. Future internal audit reviews should cover the preparation, verification, and approval of regulatory submissions.
For Malta's insurance sector, the message is clear: compliance is no longer just about meeting deadlines. The regulator expects strong oversight, effective controls, and reliable reporting processes that support the integrity of information submitted.