Announcement date
11 September 2024
Link to announcement
Total ban on the use of adverse genetic testing results in life insurance
Problem being addressed
There are significant individual, public health, and scientific benefits associated with the use of genetic testing, whether undertaken for individual health reasons or medical research. However, many Australians report delaying or foregoing potentially lifesaving, clinically relevant genetic testing, or not participating in medical research involving genetic testing, for fear it will affect their ability to obtain affordable life insurance. This is due to the current regulatory framework, under which life insurers are able to request and use consumers’ genetic testing results when considering whether, and on what terms, to offer life insurance policies. This ability exists regardless of whether the genetic testing is undertaken as part of an individual’s medical treatment, or as part of research.
Proposal
Implement a total ban on the use of adverse genetic testing results by life insurers.
Under a total ban, life insurers would be prohibited from requesting or using any adverse genetic testing results to inform their underwriting calculations. This approach would reflect the recommendations of the 2023 Australian Genetics & Life Insurance Moratorium: Monitoring the Effectiveness & Response (A-GLIMMER) report. Insurers would retain the ability to require individuals provide information about personal and family medical histories, and consumers would still be required to disclose any diagnosed condition, regardless of how that diagnosis was obtained (via genetic testing or other diagnostic methods).
Assessed Impact Analysis outcome
Good practice
Assessment comments
The analysis in the IA is good quality overall. The IA addresses the seven IA questions and follows an appropriate policy development process commensurate with the significance of the problem and magnitude of the proposed intervention.
Regulatory burden
The Treasury estimates these measures will result in an increase in average regulatory costs of approximately $9,000 per year, over ten years.