The life insurance industry has welcomed the Australian Competition and Consumer Commission's (ACCC) decision to continue a policy which bans life insurers from requesting genetic testing from potential policyholders.

The ACCC has re-authorised clauses 10.1 and 10.3 of the Investment and Financial Services Association's (IFSA) Genetic Testing Policy which forbids IFSA member companies from requiring applicants for life insurance to undergo genetic tests. The re-authorisation, which has been extended for a further two years, also says that companies can’t force applicants to undergo genetic tests by offering cheaper premiums.

IFSA CEO Richard Gilbert says the ACCC decision provides a “sensible basis” for the life industry to continue to provide affordable life premiums. “Currently, more than 95% of those who apply for life insurance are provided cover at standard rates,” he said.

“IFSA members will continue to request that any already existing genetic test information be disclosed in applications, as this can assist in more accurately assessing the risk and pricing of life insurance products.

“Genetic information may in actual fact rule out a predisposition to health problems which could be indicated by family history, thereby reducing the loading applied to a life insurance policy.”