Australian insurers will be banned from using genetic testing to refuse cover or increase premiums for a range of insurance products.
The Federal Government announced this week that it would ban the practice, after a detailed consultation effort with industry groups and experts to address genetic discrimination in life insurance earlier this year.
More than 1,000 submissions were received, with 97% supporting a total ban. The new rule covers all risk-rated insurance including life insurance, income protection and total and permanent disability insurance.
Council of Australian Life Insurers chief executive Christine Cupitt told the ABC that the industry also backed the change and had put in place an industry standard in 2019 to control how genetic tests were used.
“Australia’s life insurers have never wanted to do anything to discourage people from taking genetic tests and accessing the information they need to make informed choices about their health” she said.
The Financial Services Council, which previously oversaw the life insurance industry, introduced a self-regulated moratorium in 2019 to prevent genetic discrimination. Under the guidelines, genetic testing results could not be collected by the insurer for policies up to $500,000.
Assistant Treasurer and Federal Minister for Financial Services Stephen Jones said life insurance and superannuation products currently had an exemption from the Disability Discrimination Act, which enabled them to request the results of any genetic tests before issuing a life insurance policy.
“So, that life insurance policy might be a standard death and disability, or it might be an income protected insurance policy,” he said. “I’ve listened to the advice of the medical experts and the patient groups and others. They want to be able to have access to the best treatment, the best information possible and this exemption creates a potential barrier to claiming that support.
“We want to remove that barrier, and we want to do that this term. In the meantime, I’ve been working with the life insurance industry to get them on board… there’s a common interest for people taking charge of their health, let’s get the best information available to them so that they can get treatment, or change their lifestyle to ensure that they live longer and better lives.”
Mr Jones said Australians should go and get the medical testing and care that they need, without fear of impacting their financial situation.
“If your doctor says you really should have that test, then follow that advice – what we’re removing through this measure is any discriminatory consequences from taking that test when you go to take out a life insurance policy.”