The Insurance Association Malta said Wednesday 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.

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."