Ban on genetic test results in underwriting vital for client certainty

Financial Services Minister Daniel Mulino recommitted the government to legislating a ban on the use of genetic test results in life insurance underwriting last month, with the move receiving a clear backing from the life insurers.

According to Acenda chief operating officer Jane Murray, who leads underwriting, once the ban is legislated, it will provide certainty for Australians and allow them to undertake genetic testing without concern that adverse results will be held against them.

“No one should be deterred from taking genetic tests that help them better manage their health. That’s the really simple message that I think all of us are championing in government interactions,” Murray said.

“Overarchingly, and the reason for the ban, is that we want to support the responsible use of genetic testing to help Australians take charge of their health and that sense of empowerment and lack of fear of discrimination.

“We do believe that allowing individuals to voluntarily disclose any genetic results that may better their underwriting outcome and benefit their ability to attract cover is still really important. That approach would allow and empower people to make informed decisions about their health and ensures that genetic testing remains a tool for wellness, not exclusion.”

Importantly, she said, the health of the whole community will benefit if more people are able to engage in genetic testing and proactively address their health and wellbeing.

“We’re actually hoping that the legislation will assist Australians to make decisions to use the testing, and there’s a really big role for us to play in promoting that and informing that it’s another tool to help them better understand their holistic health profile,” Murray said, adding that it can help lead to better health outcomes across the whole community.

She added that the insurer sees advisers as having a “critical role in that trust relationship to help educate consumers” as they’re engaging in client conversations.

“Obviously, it’s a shared effort between insurers and advisers to support our customers and all Australians about understanding the role genetic testing can play in their sort of proactive health and wellbeing,” Murray said.

“We would provide guidelines in that really strong relationship between our underwriters and advisers around any guidance that we can offer there, but we see advisers always playing that really critical role in helping Australians navigate their life insurance decisions and supporting their financial decisions.”

There is also the flow-on benefit for insurers that a more proactive and healthier community would potentially reduce payouts for things like TPD.

“A healthier Australian community is healthier for life insurers because of the way pools work,” she said.