MIA's Proposals to Political Parties

MIA’S PROPOSALS TO POLITICAL PARTIES

The Malta Insurance Association is seriously concerned about the traumatic events which are threatening Malta’s reputational advantage as a centre for financial services. This current instability is a major risk to our livelihood and we appeal to all parties, whether in or outside Government, to rise above their partisan interests and to take the necessary political action to preserve what has been so hard to create.

The Malta Insurance Association also wishes to take the opportunity of the forthcoming national election to put forward proposals for inclusion in the political agenda of a future Government:

Cost of regulation
The proliferation of regulation and, in the case of insurance business, the increased level of resources devoted to regulatory and compliance matters has resulted in a massive increase in costs. Insurers are against “gold-plating” above European standards whenever cost-benefit analysis shows that unnecessary regulation will make it more difficult for us to compete with international insurers.

Arbiter for Financial Services
The Malta Insurance Association has criticised the proposed funding arrangements because there is no calibration against those sectors or participants which contribute most complaints. Insurers would support the user-pays-principle whereby costs are absorbed mainly by those entities which produce most complaints.

Savings and Retirement
Insurers call on Government to support a program that encourages people to save and to reduce their current and future dependency on social welfare. An increased reliance on funded pension schemes and the implementation of Workplace Schemes would benefit the country by increasing savings in productive investment and complementing PAYG. This however requires a review of mechanisms currently in place, especially in relation to fiscal measures.

Health insurance
Private health insurance allows individuals to supplement their social security medical entitlement with a private scheme. Insurers call on Government to support this sector through appropriate incentives and in particular to treat insured and non-insured patients equally in their entitlement to oncology drugs used outside Mater Dei.

Public health and safety
More emphasis should be made on compliance to higher standards of public health and safety. The Malta Insurance Association strongly supports the strengthening of safety regulations for highrise buildings, and mandatory employers’ liability insurance to cover workplace accidents.

Traffic management
Government should come out clearly and unequivocally in favour of road safety and discipline. In this context insurers are fully supportive of the point system; but more effort has to be made in enforcement with more police and warden presence.

Motor insurance legislation
There is lack of coherence between two sets of overlapping legislations[1] that protect victims of traffic accidents. This gives rise to legal obscurity, unnecessary litigation, and court delays. Insurers call on Government to support an initiative for the consolidation of these two regimes into one legal instrument which faithfully transposes European legislation in this area.

Equality and risk differentiation
The Malta Insurance Association calls on Government to keep equality legislation for financial services at a par with European legislation. Persons of different ages or different health status are not in a comparable situation for the assessment of risk. Indeed such differences are also recognized in many other legal relationships such as motor licensing, consent in contract and voting age.

Insurance as a Professional Career
The Malta Insurance Association calls on the Government to engage with the Association and practitioners to map out avenues for attracting more students to the relevant professional qualifications in Insurance or other related disciplines. It also calls on the Government to raise the status of an insurance qualification.

Adrian J Galea
Director General

Malta Insurance Association
22 May 2017

[1] Motor Vehicles Insurance (third-party risks) Ordinance – CAP 104 and the Protection and Compensation Fund Regulations – LN 435.2003