Australia to ban life insurance companies from discriminating based on genetic testing results

Life insurance companies will be banned from discriminating against people based on genetic testing under federal government moves designed to encourage greater use of predictive technology in preventive health.
The assistant treasurer, Stephen Jones, will announce on Wednesday that life insurers will be banned from using predictive genetic testing results in their underwriting assessments.
“This change will give Australians the confidence to undertake genetic testing without fear it will impact their ability to access financial security through life insurance,” Jones said in comments provided before the formal announcement.
“I have met with countless people affected by this issue and thank them for sharing their stories and helping to drive this important change.”
Genetic testing identifies changes in genes, chromosomes and proteins in the body and can help confirm or rule out a suspected medical condition. It can be used for early diagnosis and treatment and in some cases can help prevent a disease developing. It can also help determine a person’s chance of developing or passing on a genetic disorder or disease, enabling early decisions to be made.
But along with its potential emotional impact, undergoing testing has carried the risk of discrimination once results are confirmed and recorded.
Currently, insurers are exempt from discrimination law in relation to genetic testing and applicants for insurance are obliged to disclose if a genetic test has identified a predisposition for disease.
Under the change, that obligation will be removed – but diseases that have been medically diagnosed as already present must still be disclosed according to the insurer’s requirements.
The government is concerned that people with family history or other indicators suggesting they may develop hereditary conditions and diseases such as cancer are reluctant to undergo potentially life-saving early testing because of the risk of being refused insurance.
Advocates for change, particularly from the health sector, have campaigned for the ban for a decade, which the government believes has overwhelming public support based on community consultation.
The Australian Medical Association president, Prof Steve Robson, welcomed the change and offered “a big and grateful congratulations” from doctors nationwide.
“We know that the fear of being denied insurance coverage has been a huge disincentive for Australians to have genetic testing when they need it,” Robson said.
“Seeing this situation fixed is an enormous step forward for healthcare in this country. A situation where there’s been a huge financial penalty for having potentially life-saving medical testing has now been corrected. That’s fantastic news for Australians and for their health system.”
The life insurance industry is also supporting the move.
The Council of Australian Life Insurers’ chief executive, Christine Cupitt, said it would benefit the industry as well as those seeking insurance.
“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,” Cupitt said.
She said an industry standard had been adopted in 2019 governing how insurers used genetic tests, and testing was now becoming more common and cheaper to access. This helped people manage and sometimes avoid serious health conditions.
She welcomed the plan to review the ban every five years.
“This will be essential to ensuring the law keeps pace with advancements in genomic science and the way genetic tests are used in the future,” she said.