The Council of Australian Life Insurers has welcomed the Federal Government ban on the use of genetic test results in insurance underwriting.
A statement from the council says the industry fully supports the move to strict regulation, which will help ensure Australians are confident about accessing the information they need to better manage their health.
It says the ban comes after more than a year of collaboration between Australia’s life insurers, the Federal Government and other stakeholders.
CALI CEO Christine Cupitt, who joined the Assistant Treasurer Stephen Jones for the announcement in Canberra, says the council has worked closely with the Government to help improve health outcomes for Australians.
“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.”
Speaking with Riskinfo, Cupitt emphasised the point that life insurance is still risk rated and life insurers will continue to collect other information and other health information and family history to inform their underwriting process.
Building trust
the more we increase overall trust in life insurance, the more people will engage with it…
Cupitt also raised what she considered to be another important element associated with the acceptance of the ban on use of genetic test results in underwriting, namely that “…the more we increase overall trust in life insurance, the more people will engage with it.” She continued, “There’s potential for more new customers to be engaging with a highly trusted life insurance industry, and we’re engaging with the community and with customers on issues that matter to them.”
CALI has also welcomed the inclusion of a five-year review of the legislation, which it says will be essential to ensure the law keeps up to date with the ever-evolving genetic testing landscape.
The council says all of its 20 members recognise that genetic testing can play an important role in giving people peace of mind and supporting them to reduce potential health risks.
Australia’s life insurers have never… [required] someone to take a genetic test for the purposes of underwriting…
“Australia’s life insurers have never, and would never, require someone to take a genetic test for the purposes of underwriting. Any suggestion otherwise is simply incorrect.”
Cupitt adds that it has never been life insurers intention to deter people from taking genetic tests that give them more information about their overall health.
As background the council notes that around 15 million people are protected by life insurance in Australia and that the majority obtained their cover without ever having to disclose the results of a genetic test.
“When a person does disclose a genetic test to a life insurer it typically works in their favour by indicating a reduced risk of a certain genetic condition. In more than 80% of cases there is no impact on the final underwriting decision and in 14% of cases there is a positive impact,” it states.
