Genetics not a discriminatory issue, says IFSA

The Investment and Financial Services Association (IFSA), a major representative for group life insurers, has moved quickly to head off concerns about discriminative genetic testing in life insurance applications.

Following a damning report from the Centre for Genetics Education – ‘Proof of Genetic Discrimination in Australia’ – IFSA argued the examples used in the Australian Research Council-sponsored report “are now somewhat dated” and that more recent data should be considered.

“As of this morning, three major insurers report no complaints relating to applications with genetic testing,” IFSA said in a media release. “Further, IFSA has received no complaints from the Australian Human Rights Commission.”

Group insurer Tower confirmed they have not received any complaints. A spokesman for the company said, “We subscribe to the IFSA standard”.

According to a Genetic Testing Policy put into practice by the industry in 2002, applicants for life insurance cannot be made to undergo a genetic test, however applicants must make results of previous tests available if requested.

IFSA cited statistics from research conducted in 2007 on the assessment of insurance applications where a genetic test has been provided.

“Approximately 400 applications [of 500,000 each year] are received where the applicant has undertaken a genetic test”, the statement said, “20 per cent are declined cover”.

“Only 2 per cent of those that have undertaken a genetic test were declined on the basis of the genetic tests alone. Eighteen per cent therefore were declined on the basis of other medical or lifestyle factors,” IFSA said.

IFSA added that the 8 per cent declined cover represented approximately 0.00013 per cent of the total number of people receiving life insurance cover.

IFSA represents over 20 life insurance companies.