This comes almost a year after the government announced it would introduce the legislation.
Though current industry standards stipulate that genetic testing cannot be used in insurance underwriting to justify exclusions, no official ban has ever been in place.
Voicing her support for the new bill, Council of Australian Life Insurers (CALI) chief executive Christine Cupitt has described the legislation as an “important milestone” for Australians and their families, and a step forward for government and industry in reinforcing confidence in both predictive genetic testing and life insurance.
“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,” Cupitt said.
“No one should be deterred from taking predictive genetic tests that help them to better manage their health. As life insurers, we want people to access the information they need to make informed choices about their health and to manage it proactively,” she added.
Advocate for change and co-lead of Monash University’s DNA Screen program Dr Jane Tiller, who worked closely with the government on this reform, agreed this legislation is good news for Australians.
“Genetic testing can save lives by identifying people who are at a very high genetic risk of disease that can be prevented or treated early. This includes certain cancers and heart disease,” she said.
Tiller also highlighted how many Australians have been afraid to get genetic testing due to the potential financial implications, calling the government action both timely and necessary.
“Choosing not to have genetic testing means people could miss out on critical health information and access to early intervention or prevention, which can be lifesaving,” she said.
Tiller added: “The new legislation will change that. It will allow people to have genetic testing without worrying about the implications for their life insurance in future.
“It will enable genetic research and investment into the development of DNA screening programs. It will increase public trust in genomics and remove barriers to preventive health.”
Broadly, Australia’s life insurance industry has been supportive of the responsible use of predictive testing, evidenced through a 2023 survey that found that 97 per cent of insurers supported a total ban.
Part of this legislation also includes a five-year review, which CALI describes as “essential to ensure the law keeps up to date with the ever-evolving predictive genetic testing landscape.”
“All of CALI’s members recognise that predictive genetic testing can play an important role in giving people peace of mind and supporting them to reduce potential health risks,” the association concluded.
Not all financial organisations have been supportive of the proposed ban, in particular the Financial Advice Association Australia, which stated in March they believe the ban would harm existing policyholders.
“The FAAA continues to favour a model where the existing moratorium on insurers using genetic testing in life insurance below certain caps was legislated (albeit with indexation of the thresholds),” it said at the time.
“We think this would provide a sensible balance, allowing people with high-risk genetic test results to still access life insurance, but not at a level that would unreasonably impact the life insurance pools and increase costs for existing life insurance policyholders.”
