CALI is urging the Federal Government to promptly enact legislation prohibiting the use of genetic test results in insurance underwriting.
Its demand follows a 2024 Government decision to introduce such a law during its current term legally preventing life insurance companies requiring access to consumers’ genetic test results.
CALI CEO Christine Cupitt says that without a law being put in place, consumers may avoid taking a genetic test for fear the results could be used against them by insurers.
While the FSC introduced a Moratorium on Genetic Tests in Life Insurance – for those seeking life cover up to $500,000 – research firm Canstar states the average new mortgage is $660,000. The state with the largest average home loan is NSW at $795,000.
See: How the Genetics Moratorium for Life Insurance is Working
“Australians need certainty,” says Cupitt. “No one should be deterred from taking genetic tests that help them to better manage their health.
“Life insurers want to support Australians to manage their health in a preventative way and recognise that genetic testing plays an important part in empowering them to do so.
Australians want the Government to legislate, and so does our industry…
“Australians want the Government to legislate, and so does our industry. We need legislation to remove uncertainty in the community,” added Cupitt.
In 2023, the Federal Government sought community feedback on the use of genetic test results, and a year later, a Riskinfo adviser poll showed slim support for a ban.
Cupitt says the country’s life insurers have long supported the responsible use of genetic testing to help Australians take charge of their health, and in 2019 insurers introduced a mandatory industry standard to restrict the use of genetic test results in underwriting.
“A lot has changed since our industry standard was introduced,” she says. “Given the advancements in the science and accessibility of genetic testing, now is the time for the Government to act and legislate,” said Cupitt.
“The industry has welcomed the Government’s recommitment to include a five-year review, which will be essential to ensure the law keeps pace with the ever-evolving genetic testing landscape.”
Click here to see all our reports on genetic tests.
CALI preaches aim for sustainable premiums and yet is here advocating to allow those with adverse genetic test results to be able to apply for cover and not have to disclose they have a higher risk of claim than other lives. Will this be the start of need for insurers to move to higher premiums to cover increased claims or inability to underwrite any medical risks.
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