Genetic testing in life underwriting issue finally resolved
The Federal Government supported by the major life insurers has put settled the long-running debate over genetic testing by banning the use of adverse results in life insurance underwriting.
The Assistant Treasurer and Minister for Financial Services, Stephen Jones announced the ban while acknowledging that the genetic testing issue had been up for debate for more than a decade.
He said the ban had been underpinned by extensive stakeholder engagement and consultation, noting that consumers would still be able to choose to disclose favourable genetic testing results.
Council of Australian Life Insurers chief executive, Christine Cupitt said the industry fully supports the move to strict regulation.
“We welcome this decision and have worked very closely with the Government to help improve health outcomes for Australians Cupitt said.
“We’ve long been clear about the need for strict regulation to ensure that no one is deterred from taking a genetic test to proactively manage their health.”
She noted that the industry has welcomed the inclusion of a five-year review, which will be essential to ensure the law keeps up to date with the ever-evolving genetic testing landscape.
What we will see next is a proliferation of commercial genetic testing providers encouraging people to “see if they need insurance or not”. Those with adverse results will buy more insurance and push up the risk of claims. Those with clear results will avoid buying insurance and/or cancel what they have, reducing the premium pool available to pay claims. Premiums will rise significantly as a result.