The Association of Superannuation Funds of Australia (ASFA) has expressed support for a proposed legislative ban on utilising genetic test results adversely in life insurance. Their rationale is based on data indicating that a negligible segment of insured members undergo genetic testing. A study of individuals over 45 suggested only 5% have participated in disease-related genetic testing. Furthermore, sector findings from 2021 showed that just about 10% of individuals who disclosed genetic test outcomes faced less favorable insurance terms, with some experiencing declined coverage.
Given the statistical projections, only a minor fraction of the approximately 9 million Australians with group life coverage through super would potentially be affected by genetic test considerations. As a result, insurers offering group coverage via superannuation are expected to endure minimal financial ramifications should adverse genetic testing results be prohibited. This is particularly true as only a subset with adverse results may eventually lodge a claim.
Nonetheless, the application of genetic testing is anticipated to escalate, potentially leading to more extensive underwriting practices outside the super environment. Observations indicate that higher levels of coverage and individually underwritten insurance are more prevalent outside superannuation, a trend that could intensify as genetic testing gains wider adoption.
