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
AZ NGA has partnered with an Adelaide-based accounting and financial planning practice as it expands its presence in South Australia.
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
