Consultation on genetic tests in life insurance regulation: Actuaries advise for fair balance
Jessica Chen
The Actuaries Institute strongly supports the Government’s objective to maximise the benefits of genetic testing while ensuring consumers can access affordable life insurance and the life insurance industry is sustainable.
The Institute’s submission, lodged today, to the Government consultation urges key protections to be included as part of any legislative intervention.
Key protections include setting financial limits below which applicants are not required to disclose predictive genetic test results and ensuring the policy incorporates a periodic review mechanism to adapt to the advances in genetics.
Actuary Jessica Chen, Chair of the Institute’s Genetics Working Group, said, “For genetic science to flourish, life insurance regulation must adapt to give consumers confidence that if they take a genetic test they can still access a reasonable amount of life insurance cover.”
“To maintain a level of fairness across all customers, we advise Government to strengthen regulation by legislating a financial limit below which applicants need not disclose genetic test results, and at a level roughly twice that currently determined by industry through self-regulation,” said Ms Chen.
The Institute recommends a financial limit of $1 million for Death cover, $1 million for Total Permanent Disability (TPD) cover, $250,000 for Trauma cover, and $8,000 per month for Disability Income Insurance.
These better reflect contemporary consumer needs.
The Institute notes it will take years for experience under a legislated intervention to fully materialise which is why a cautious approach of higher financial limits is advised.
Any policy changes should be accompanied by education, guidance and support for consumers, genetic counsellors and the wider community.
