FSC proposes Genetics Council to address science advancements
The Financial Services Council (FSC) has proposed to form a Genetics and Insurance Advisory Council to govern the direction of public policy in relation to the rapidly growing genetic science industry and how it should apply to life insurance.
The proposed council, which would comprise of policymakers, geneticists, health professionals and life insurance industry representatives, would set a long-term framework for the integration of genetics and life insurance that best meets consumer needs.
FSC chief executive officer, Sally Loane, said a formal roundtable is necessary to develop a universal policy approach and avoid the issues that other global jurisdictions have faced in attempting to create regulations.
She said a flexible policy approach was necessary to allow for future technological and societal change in the wake of rapid advancements in genetical science.
“I have this week written to the Minister for Health, the Hon Greg Hunt MP, and the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, to suggest the formation of a Genetics and Insurance Advisory Council to provide advice on future policy in this regard,” said Loane. “It’s about identifying the points of agreement, the points of difference and plotting a way forward.”
The proposed Council would build on the FSC’s current standard governing the use of genetic testing by life insurers, which was initiated in 2002 and stipulated that insurers cannot require a person to undergo compulsory genetic testing when applying for insurance.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
