The Australian government has introduced legislation that will prevent life insurance companies from using adverse genetic test outcomes in their underwriting processes. The legislative proposal addresses concerns among medical professionals and patients that genetic discrimination in insurance has discouraged preventive health screening.
Dr. Daniel Mulino (pictured centre), Assistant Treasurer and Minister for Financial Services, announced the measure following consultation across insurance, medical, and community sectors. The proposal reflects recognition that some Australians have avoided genetic testing because of anxiety regarding potential insurance consequences. “Genetic testing saves lives, and Australians should be able to access it without worrying it will affect their ability to get affordable life insurance,” Mulino said.
The legislative framework prohibits underwriters from accessing or considering results from genetic tests that reveal disease predisposition or hereditary health risks. Genetic testing services can assist clinicians in identifying individuals at elevated risk for hereditary cancers and other conditions, enabling earlier management and intervention strategies.
Life insurers in Australia had anticipated regulatory action in this area. The Council of Australian Life Insurers (CALI) implemented voluntary restrictions on genetic testing information in 2019, preceding government legislation by several years. CALI chief executive Christine Cupitt commented on the legislative development: “Life insurers have provided people with the protection and certainty they need on their best and worst days. This legislation will give Australians more certainty and empower them towards better health outcomes.”
The legislation establishes a mandatory review in five years to evaluate potential market effects and ensure continued alignment with developments in genetic science and testing methodologies. Cupitt indicated the sector supports the inclusion of a periodic review clause. “The rapid evolution of genetic science has made government action both timely and necessary,” she said, adding that the proposed five-year review window would enable lawmakers to track emerging developments in testing technology and scientific understanding.
Health professionals provided support for the legislative direction when government consultation occurred. Prof. Steve Robson, chief medical officer at Avant Mutual, said: “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. Seeing this situation fixed is an enormous step forward for health care in this country.”
Robson emphasised the elimination of financial barriers to medical care in his 2024 statement. “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,” he said.
Dr. Jane Tiller of Monash University highlighted the policy’s consumer protection dimensions during the consultation period. “I congratulate the government and the assistant treasurer on their commitment to consumer protection and preventive health, and the rigorous process they have undertaken on this issue. This is outstanding news for patients and the Australian public, and will safeguard future of genomic medicine, precision health, and medical research. This policy reform will provide certainty to consumers and allow Australians to make genetic testing decisions based on their health rather than fears of financial discrimination,” Tiller said.
The government’s legislative approach was informed by public feedback solicited during 2023. Respondents numbering over 1,000 participated in the consultation process, with 97% indicating support for banning adverse genetic test results in underwriting. The legislation permits individuals to voluntarily disclose favourable genetic findings if they determine disclosure beneficial to their insurance applications.
