The life insurance sector in Australia has expressed strong support for the Federal Government's recent move to initiate a consultation paper aimed at gathering public opinion on the application of genetic test results in insurance policies.
The Council of Australian Life Insurers (CALI), a prominent body in the industry, has emphasised the role of genetic testing in enabling Australians to make proactive decisions about their health and future.
“Genetic testing can help empower Australians to manage potential health risks in a preventative and personalised way,” said CALI CEO Christine Cupitt.
“Our industry certainly doesn’t want to dissuade people from taking genetic tests or participating in scientific research that gives them more information about their overall health.”
Companies like Genetic Technologies Limited (ASX:GTG, NASDAQ:GENE, OTC:GNTLF) now offer in-depth genetic health screening capable of detecting risk factors and predispositions toward illness or disease that can then be actively managed and detected early.
The use of such data in insurance assessments can be controversial, due to the possibility of discrimination and punitive insurance rates or premiums.
Support for regulation
CALI says it advocates for improvements in genetic testing that align with the interests of Australian consumers and the broader community.
The organisation concurs with the Federal Government on the need to regulate the use of genetic test results in the underwriting process of life insurance.
The regulation would aim to adapt to advancements in genetic science and healthcare while considering the impact on life insurance's accessibility and affordability.
“We want to deliver the protection and certainty Australians need on their best and worst days,” Cupitt said.
“It’s critical that regulation meets community expectations while also managing the risks and costs of life insurance fairly for everyone insured.”
2019 testing moratorium
In 2019, Australian life insurers played a crucial role in developing a Genetic Testing Moratorium, which has been incorporated into the industry's Life Insurance Code of Practice (Life Code).
The code establishes guidelines on the usage of genetic test results in insurance policies, limiting how insurers can use genetic test results, for example:
- An insurer will never ask or encourage a person to get a genetic test when applying for life insurance.
- An insurer must not use a person’s genetic test results, unless that person chooses to declare them (except when the insurance cover exceeds limits outlined in the Life Code).
- If the insurance cover exceeds the financial limits outlined in the Life Code, an insurer can ask a consumer for genetic test results but must not use them unless the test is relevant to the cover applied for (in accordance with the Disability Discrimination Act).
- Insurers take into account favourable genetic tests if the consumer chooses to disclose them (for example, to show that they are not carrying a gene pattern associated with developing a hereditary illness) and any evidence-based preventative treatment they have undertaken that reduces their possibility of developing a hereditary illness.
“We want to stand alongside Australians as they face life’s biggest decisions and challenges, whether it’s having a baby, taking out a mortgage, starting a business or planning for retirement,” Cupitt emphasised.
“A sustainable life insurance industry is critical to ensuring Australians can live in a healthy, confident and secure way over their lifetime.”
The Government’s consultation process will close at the end of January 2024.