Minister unveils draft legislation on genetic testing in life insurance ban

On Wednesday, Financial Services Minister Daniel Mulino released draft legislation for the ban, calling it the “next important step to ban the use of adverse genetic test results in life insurance underwriting”.

“This follows consultation with community members, medical practitioners and genetic researchers, and continues our commitment to investing in genetic research and technology in Australia,” Minister Mulino said.

“Genetic testing can help save lives, supporting medical practitioners to prevent, diagnose, treat and monitor a range of cancers, cancer predisposition syndromes and other heritable conditions.”

He added that the previous rounds of consultation and stakeholder engagement have informed the new draft.

“Australians should not be discouraged from undertaking genetic testing out of fear it may impact their ability to get life insurance,” the minister said.

He added: “We want to ensure that the legislation delivers on the objectives of the ban, providing Australians with the certainty to continue undertaking potentially life‑saving genetic testing without worrying it will affect their life insurance.”

Alongside banning the use of adverse genetic test results, according to the bill’s explanatory materials, it would also create new strict liability and civil penalty provisions for breaches of the ban, with ASIC assigned regulatory responsibility for monitoring and enforcing the ban, mandate periodic five-year reviews of the ban, and clarify the operation of existing duties and limits in relation to a contract of life insurance in light of the ban.

Minister Mulino had recommitted the government’s intention to legislate the ban in July, while 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 at the time.

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.

Speaking with ifa last month, Acenda chief operating officer Jane Murray, who leads underwriting, said 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.”

Consultation on the draft legislation is open until Sunday, 12 October.