Insurers Down Under have reportedly been using genetic information to reject applicants
While insurers in Canada now face restrictions in how they use genetic information to assess applicants, Australian insurance companies are much less regulated. The industry there is self-regulated — which critics say is causing problems.
“Australian life insurance companies are technically required by law to justify decisions based on genetic results,” according to a report from Green Left Weekly. “However … the insurance companies have not used any expert advice on genetic risk assessments.”
The article cited a case where one man was denied life insurance coverage by thee companies because of a mutation that increased his risk for colon cancer; however, a yearly colonoscopy would essentially eliminate any risk of death from colon cancer.
In another instance, a woman with a BRCA gene mutation, which increases breast cancer risk, had a double mastectomy. But upon applying for death and critical illness cover, she was still denied cancer coverage and hit with a 50% premium loading for death cover.
“Consumers have no way of requiring insurers to provide information about how decisions are made,” the report said. It also noted that the life insurance industry self-regulates its use of genetic data through the Financial Services Council (FSC), “raising obvious conflicts of interest.”
Claiming that insurance companies are being allowed to discriminate against applicants for life, permanent disability, and income-protection insurance, the report noted that Australians are getting discouraged from even taking genetic tests or participating in genetic research.
Meanwhile, other jurisdictions have introduced safeguards. Aside from Canada, European countries such as the UK, Belgium, Austria, Denmark, and France have introduced restrictions or bans on insurers’ use of information.
“A parliamentary inquiry into the life insurance industry is under way,” the report said. “It was supposed to report by June but it has now been extended to next March … The final report needs to support an immediate ban on the use of genetic test results in insurance.”
Related stories:
Canadian insurers out-of-date on genetic testing, says non-profit group
Genetic testing law will lead to higher premiums, says industry body
“Australian life insurance companies are technically required by law to justify decisions based on genetic results,” according to a report from Green Left Weekly. “However … the insurance companies have not used any expert advice on genetic risk assessments.”
The article cited a case where one man was denied life insurance coverage by thee companies because of a mutation that increased his risk for colon cancer; however, a yearly colonoscopy would essentially eliminate any risk of death from colon cancer.
In another instance, a woman with a BRCA gene mutation, which increases breast cancer risk, had a double mastectomy. But upon applying for death and critical illness cover, she was still denied cancer coverage and hit with a 50% premium loading for death cover.
“Consumers have no way of requiring insurers to provide information about how decisions are made,” the report said. It also noted that the life insurance industry self-regulates its use of genetic data through the Financial Services Council (FSC), “raising obvious conflicts of interest.”
Claiming that insurance companies are being allowed to discriminate against applicants for life, permanent disability, and income-protection insurance, the report noted that Australians are getting discouraged from even taking genetic tests or participating in genetic research.
Meanwhile, other jurisdictions have introduced safeguards. Aside from Canada, European countries such as the UK, Belgium, Austria, Denmark, and France have introduced restrictions or bans on insurers’ use of information.
“A parliamentary inquiry into the life insurance industry is under way,” the report said. “It was supposed to report by June but it has now been extended to next March … The final report needs to support an immediate ban on the use of genetic test results in insurance.”
Related stories:
Canadian insurers out-of-date on genetic testing, says non-profit group
Genetic testing law will lead to higher premiums, says industry body
