The financial advice community appears to only narrowly support a ban on the use of predictive genetic test results in life insurance underwriting.
As we go to press, strong interest in our latest poll saw 52% supporting a ban on the use of predictive genetic tests results in life insurance underwriting, with a sizable 40% of respondents disagreeing with such a ban. Another 8% weren’t sure.
As we reported last week, a total ban appears – at least on the surface – to tick all the boxes in terms of doing the right thing by the industry and the broader community.
From the community perspective, a ban on using genetic test results in the underwriting process will result in delivering greater confidence to Australians, providing peace of mind for those who may have been wavering as to whether they should undertake such a test, in the event any adverse findings might impact their ability to access life insurance in the future.
As CALI chief, Christine Cupitt, noted in our report on the Government’s proposed ban (see: Ban on Use of Genetic Test Results Welcomed), it’s never been life insurers’ intention to deter people from taking genetic tests that give them more information about their health.
On the other side of the coin, it might be argued – especially given the increase in the number of genetic tests now being undertaken – that this impending ban may contribute to skewing the overall quality of the life insurance pool, potentially placing upward pressure on premiums for every insured life and policy owner in the pool.
We also questioned whether under a total ban on using the results, a prospective life insured in receipt of an adverse finding from a predictive genetic test may tend more towards taking out life insurance cover.
Meanwhile, someone who receives a good test outcome might continue to take out life cover but they may also reconsider applying, given the known odds of longevity have shifted slightly more in their favour.
Our poll remains open for another week and we are interested to hear your thoughts…
