Qualified Support for Banning Genetic Tests in Underwriting

Advisers have delivered a luke-warm vote of support for banning genetic test results from being used in underwriting.

As we go to press, almost six in ten of those voting in our latest poll (57%) agree with banning genetic tests in underwriting. On the other side of the coin, one in three (33%) do not support the impending ban.

The view of those supporting the proposition can be encapsulated within the arguments expressed by CALI chief, Christine Cupitt. As we’ve reported elsewhere on this issue, Cupitt argues certainty is critical:

“No one should be deterred from taking genetic tests that help them to better manage their health.”

“Australians want the Government to legislate, and so does our industry. We need legislation to remove uncertainty in the community…”

On the flip-side, these comments from advisers neatly sum-up the argument against, and talk to the potential consequences that may stem from this decision:

“The tragic irony will be the accelerated unaffordability of premiums.”

And:

“…the start of the path to higher community pricing”

It seems, then, that the poll majority support certainty for Aussie consumers in their engagement with life insurance, but a significant minority feel this benefit is outweighed by their concern around the changing complexion of life insurance pools.

This perspective effectively argues that consumers with favourable genetic test results may be less disposed to take out life insurance, while those who receive more unfavourable results, that is, results which indicate a higher likelihood of an early death or contracting critical conditions may be more likely to take out cover, thereby impacting the quality of life insurance pools.

The ban on the use of genetic test results in underwriting is a done deal, although it has yet to be legislated, and only time will provide the answer as to the level of impact this ban will have on life insurance affordability.

Our poll remains open for another week if you’d like to add your voice to this discussion…