The Council of Australian Life Insurers (CALI) is urging the federal government to move quickly on legislation that would prohibit life insurers from using genetic test results in their underwriting processes.
This request follows extended engagement between the insurance sector, government officials, and other stakeholders over how genetic information should be handled in insurance applications.
CALI has welcomed the government’s renewed commitment to enacting this ban, highlighting the need for regulatory certainty.
According to CALI CEO Christine Cupitt, providing clarity for consumers is essential.
“Australians need certainty. No one should be deterred from taking genetic tests that help them to better manage their health,” she said.
She noted that the industry supports preventative health strategies and acknowledges the value of genetic testing in helping individuals make informed choices.
“Life insurers want to support Australians to manage their health in a preventative way and recognise that genetic testing plays an important part in empowering them to do so,” Cupitt said. “Australians want the government to legislate, and so does our industry. We need legislation to remove uncertainty in the community.”
While the life insurance industry introduced a mandatory standard in 2019 that limited the use of genetic test results in underwriting, CALI now maintains that legislative action is necessary.
The organisation points to significant advances in genetic science and the growing accessibility of testing as reasons for updating the regulatory approach.
“A lot has changed since our industry standard was introduced. Given the advancements in the science and accessibility of genetic testing, now is the time for the government to act and legislate,” Cupitt said.
CALI also supports the inclusion of a five-year review period in the proposed law, which is intended to ensure the legislation remains relevant as genetic technologies evolve.
In September 2024, the Albanese government announced its intention to introduce a law that would prevent life insurers from taking adverse genetic test results into account when assessing applications.
The government’s move is designed to address concerns that people may avoid genetic testing out of fear that negative results could impact their access to life insurance.
Under the proposed rules, applicants would not be required to disclose unfavourable predictive genetic test results, although they may still choose to share positive outcomes.
This policy follows a public consultation process that received more than 1,000 submissions, with the overwhelming majority supporting a complete ban on the use of genetic test results by insurers.
The government has committed to reviewing the ban every five years to ensure it remains effective and keeps pace with advancements in genetic testing.
Former Assistant Treasurer Stephen Jones said the policy is intended to give Australians confidence to pursue genetic testing without worrying about repercussions for their financial security.
“I have met with countless people affected by this issue and thank them for sharing their stories and helping to drive this important change,” he said.
This legislative development is part of broader government investment in genomic research and newborn screening initiatives.
By moving to prohibit the use of genetic test results in life insurance, Australia aligns itself with a small number of countries that have taken steps to address genetic discrimination in insurance.
