Genetic testing ruled out
Life insurance companies will not require policy holders to undergo genetic testing under a ruling delivered by the Australian Competition and Consumer Commission (ACCC) yesterday.
The decision has been supported by the Investment and Financial Services Association (IFSA) who have formulated a policy that sought to keep genetic testing out of the life insurance market.
To ensure competition between companies is not under threat the ACCC has said IFSA members will not encourage life insurance applicants to undergo testing by offering discounts on premiums for favourable test results.
At present life companies who are part of IFSA make up 98 per cent of Australia's life insurance industry,
IFSA chief executive officer Lynn Ralph says, "the ACCC decision provides a sensible basis for the industry to continue to provide affordable life insurance."
The proposed agreement has been authorised for a period of two years to allow time for government policy to be developed, says ACCC chairman professor Allan Fels.
The Australian Law Reform Commission (ALRC) and Medical Research Council are conducting their own joint inquiry into human genetic information privacy and discrimination issues.
IFSA members however will continue to request that existing genetic test information be disclosed in the assessing of life products.
Currently five million Australians have some sort of life product according to IFSA data with approximately $366 billion of life cover being provided.
Recommended for you
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
