The parliamentary inquiry into the life industry has recommended a ban on insurers using predictive genetic test results.

It is concerned applicants may be discriminated against, and that people may be deterred from undertaking potentially life-saving genetic tests.

The inquiry’s report says legislation is not appropriate for now, because the industry’s use of genetic information is still low and understanding of genetic testing and accuracy is evolving.

It says the Financial Services Council should update its self-regulatory code of practice to stop life insurers using predictive tests at least in the medium term.

“This should be done as a matter of some urgency… the moratorium should be reviewed five years after being imposed, with the review to take into account consumer impacts.

“Any moratorium arrangements should apply indefinitely to predictive genetic test results obtained before the lifting of the moratorium, if it is lifted, to avoid sharp jumps in premiums for existing insureds.”

The inquiry suggests the Government should monitor proposed changes to the code.

“If life insurers fail to implement and abide by the revised code and standards, then the committee suggests the Government implement legislation to ban the use of genetic information by life insurers, except where the consumer provides genetic information to a life insurer to demonstrate they are not at risk of developing a disease,” the report says.