The federal government announced in December 2024 it would introduce a legislative ban on the use of genetic test results, yet despite insurers being on board with the ban, legislation has not been delivered.
Following Financial Services Minister Daniel Mulino announcing the government’s recommitment to the ban, Council of Australian Life Insurers (CALI) chief executive Christine Cupitt said the organisation is “strongly supportive”.
“It’s good for Australians and their families, it’s good for the government, and it’s good for life insurers, too,” Cupitt said.
Mulino also announced there would be a five-year review of the legislation, which the CALI CEO said is “critical to make sure that the legislation keeps pace with advances in genetic testing”.
As it stands currently, insurers can access genetic tests results of clients as a means to inform premiums based on potential future illnesses. This is despite the introduction of industry standards to restrict the use of genetic testing results in underwriting.
Moreover, CALI has found in surveys that 97 per cent of insurers support the ban and believe it inappropriate to be used in the assessment process.
In the latest round of attention to this issue, CALI has urged the government to create this legislation “without delay”, highlighting that “all of CALI’s members recognise that genetic testing can play an important role in giving people peace of mind and supporting them to reduce potential health risks”.
“Australians need certainty. No one should be deterred from taking genetic tests that help them to better manage their health,” Cupitt said.
“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.”
The slow movement on the ban has been a point of contention for months, drawing criticism from multiple corners.
“Under the status quo, people who could benefit from genetic testing are discouraged because of the risk of insurance discrimination. There is broad agreement and support for this ban on life insurers using genetic testing to refuse cover,” then-shadow financial services minister Luke Howarth stated in February.
Monash University’s Dr Jane Tiller said: “We are now calling on the government, and the opposition, to do right by Australians and commit to introducing this legislation as an immediate priority of the 48th Parliament.”
Around the same time as this wave of criticism, the government opened a technical consultation on genetic testing ban, with former financial services minister Stephen Jones stating at the time: “Genetic research is constantly evolving. The consultation is to ensure this legislation captures the intent of the government’s decision and does not have unintended consequences.”
Despite the intentions, legislation is still significantly behind industry standards.
However, not all financial organisations are supportive of the proposed ban, with the Financial Advice Association Australia stating in March they believe the ban will harm existing policyholders.
