Phil Anderson
In its submission on Genetic Testing Protections in Life Insurance, the FAAA says it supports the Government taking action to provide Australians with greater confidence to undertake genetic testing.
However at the same time it says that life insurance is a pooled arrangement, and increased claims for new policy holders leveraging these reforms will have an impact on the pricing of life insurance cover for all policy holders, particularly existing policyholders who have already been subject to large premium increases in recent years.
It says: “The FAAA is supportive of measures to remove perceived restrictions on people undertaking genetic testing, however we are concerned about how this reform could work to the disadvantage of other life insurance policy holders.
“We continue to advocate for measures to reduce the risk of this reform being used by people to access large levels of cover or to increase their existing life insurance, where they have genetic testing results indicating a significantly increased probability of claiming on that cover and as a result disadvantaging other policyholders.”