The FAAA is concerned that those with genetic test results showing significantly increased health risks could take advantage of life insurers under the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025.
While the organisation is widely reported as supporting the Government in providing Australians with greater confidence to undertake genetic testing, it has told the Senate Economics Legislation Committee, which is holding an inquiry into the Bill, of its concerns.
“As it stands, the Bill ensures the results of any genetic test – whether for personal medical reasons or through participation in clinical research – cannot be used by insurers when underwriting a life insurance policy,” says the FAAA’s Phil Anderson, GM Policy, Advocacy, and Standards.
Anderson says that while the results of those seeking genetic tests to confirm hereditary conditions will be available to insurers, those without a family history can keep their genetic test results private.
As a result, he says people could seek life insurance payouts they would not have had access to in the absence of this reform.
“The legislation places no restrictions on how much cover people who have concerning genetic test results can seek to obtain,” he says.
The FAAA wants members of the committee to give “careful consideration to the consequences for existing policyholders” in terms of premium increases.
…the insurer would be forced to disregard the genetic testing…
He also says a life insurance policyholder who has a premium loading or an exclusion on the basis of genetic testing information – that was known prior to commencement – “could seek to double or quadruple their level of insurance, and the insurer would be forced to disregard the genetic testing”.
“This is an outcome that is very favourable to the impacted policyholder,” he says. “But disadvantageous to other policyholders who are part of the pool. There is evidently no limitation on how much cover they could seek.”
The findings of the inquiry into the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 is scheduled to be released by 26 February 2026. Submissions closed 21 January 2026.
