Genetic testing ban takes effect for life insurance

Australians can access genetic testing without risking discrimination in life insurance under a new ban that took effect on October 8, with the Australian Financial Complaints Authority (AFCA) also updating its rules to handle complaints involving adverse genetic test results.

The government's ban prohibits life insurers from using adverse genetic testing results in underwriting, aiming to remove a potential barrier to Australian's seeking information about their health.

Assistant treasurer and minister for financial services Daniel Mulino said 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 said.

The restrictions do not prevent individuals from voluntarily providing genetic test results with written consent, provided those results are used only where they do not disadvantage the insurance offer or policy terms. Insurers can also continue to consider other relevant underwriting information, including existing illness, symptoms and family medical history.

The Australian Securities and Investment Commission (ASIC) will enforce compliance, while suspected breaches can be reported to the regulator. Affected Australians can also seek resolution through AFCA or the Australian Human Rights Commission.

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 said the industry supported 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 said.

Monash University DNA Screen co-lead Jane Tiller said 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 said.

The legislation will be subject to a statutory review every five years.