Insurance Association Malta: ‘Equality Bill was rushed through without consultation’

The Insurance Association Malta says that it is concerned that the latest Bill establishing the National Commission for Human Rights and Equality has been fast-tracked without renewed consultation with the insurance sector.

“The current Bill differs in several important aspects from the earlier draft legislation discussed in 2017 and 2018, and it is regrettable that it has progressed without consulting the insurance sector again,” IAM said.

The Association stressed that the insurance industry fully supported the objectives of equality, inclusion and the protection of fundamental rights.

"However, legislation affecting insurance and other financial services must also recognise the essential role that risk assessment plays in protecting policyholders and ensuring that insurance products remain fairly priced and sustainable," it added.

Given the Bill’s potential implications for policyholders, insurers and Malta’s wider financial services sector, the Association said the government should have held further discussions with stakeholders before proceeding to wrap up the parliamentary process.

“Insurance is founded on the assessment of risk. Risk-based underwriting – when supported by objective actuarial, statistical and medical evidence – is a legitimate and internationally recognised practice designed to ensure fairness across all policyholders,” IAM said.

“It should not be confused with unlawful discrimination.”

What is the Equality bill?

The Bill proposes the establishment of a new National Commission for Human Rights and Equality, replacing the existing National Commission for the Promotion of Equality (NCPE). The new body would have a broader remit, investigating both human rights violations and discrimination, while promoting equality across the public and private sectors.

Under the proposed law, the commission would receive complaints, conduct investigations, issue recommendations and monitor their implementation. It would also be empowered to launch investigations on its own initiative where there is reasonable suspicion of a human rights violation, with its remit covering areas including employment, education, access to goods and services, and advertising.

Last week, employment lawyer Andrew Borg Cardona questioned the need for the Bill in an interview with MaltaCEOs.mt, arguing that Malta's existing laws already provide robust protection against discrimination.

“Frankly, I see no real point in the law, as protection against discrimination is already very well provided for under existing legislation and the cost of setting up another authority would have been much better applied towards proper training and education of the existing players,” Dr Borg Cardona said.

The Bill has also faced criticism from several sectors of society, including doctors, Church schools and pharmacists, as well as free speech activists.