Life insurers can no longer use genetic test results against you
Australians can now access genetic testing without worrying that adverse results will be used against them when applying for life insurance, following a new ban that took effect on October 8.
The new rules prevent life insurers from using adverse genetic test results when assessing applications, removing a barrier that may have discouraged Australians from seeking potentially life-saving health information.
Assistant treasurer and minister for financial services Daniel Mulino says the reforms would allow people to make informed health decisions without fearing the consequences for their insurance access.
"Australians should never have to choose between accessing potentially life-saving genetic information and obtaining life insurance. With this ban now in place, they no longer have to," Mulino says.
The changes do not stop people from voluntarily providing genetic test results with written consent. However, those results can only be used when they do not disadvantage the insurance offer or policy terms.
Life insurers can still consider other relevant information when assessing applications, including existing illnesses, symptoms and family medical history.
Australians who believe a life insurer has breached the ban can report concerns to the Australian Securities and Investment Commission (ASIC).
What changes for consumers?
- Life insurers can no longer use adverse genetic test results when assessing applications.
- You can still choose to provide genetic test results with written consent.
- Any results provided can only be used if they do not disadvantage your insurance offer or policy terms.
- Insurers can still consider existing illnesses, symptoms and family medical history.
- Complaints can be lodged with AFCA.
How complaints about genetic testing will be handled
AFCA's updated rules, approved by ASIC and effective from October 8, specifically allow the complaints body to consider cases involving the solicitation or use of adverse genetic testing results in life insurance.
Council of Australian Life Insurers chief executive Christine Cupitt says the industry supported Australians having access to health information.
"Australia's life insurers want people to access the information they need to make informed choices about their health and to manage it proactively," Cupitt says.
Monash University DNA Screen co-lead Jane Tiller says the reform followed nearly a decade of work by researchers, patient groups, clinicians and policymakers.
"This reform will provide reassurance to people considering having genetic testing and paves the way for greater investment into preventive genomic screening," Tiller says.
The legislation will be subject to a statutory review every five years.
This article was first published on Financial Standard
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