Insurers criticized for genetic discrimination

The number of documented cases of people being refused insurance after being gene-tested has almost doubled since recent publicity about gene-testing according to director of the NSW Genetics Education Program Dr Kristine Barlow-Stewart.

Over 60 cases of people discriminated against by insurance companies following a gene test have now been documented says Barlow-Stewart.

"It's a concern that the number refused insurance has reached so high considering the few gene tests we can do now," Barlow-Stewart says.

"Once gene-testing becomes more widespread there's going to be a lot more problems."

She says something should be done immediately to clarify how gene-testing will be used to price risk.

"The problem is insurers are using predicative gene tests, which may indicate a 50 per cent chance of developing a disease, and counting that as a 100 per cent chance. Insurers, geneticists and actuaries should get together to assess gene-testing in risk assessment."

Barlow-Stewart applauds the Investment and Financial Services Association (IFSA) attempt to stop discounting of insurance policies if a client takes a gene test.

However, the Australian Competition and Consumer Commission's draft ruling declared the IFSA policy on discounting anti-competitive. A final ruling that may overturn the previous decision is expected soon.

IFSA head, Lynn Ralph, says while the Federal Government inquiry into the impact of gene technology is under way insurance companies would not ask applicants to take a gene test but will require disclosure of previous tests.

"Our policy also states that if people do disclose gene tests insurance companies won't use it against their families," Ralph says.

Barlow-Stewart says the IFSA policy is admirable but doubts whether it can stop companies using the test results of one person against their family.

"I don't see the firewalls in place to stop this. How can the policy stop an insurance broker out there who deals with an entire family using a gene test of one against the others?"

Ralph says in the long term gene testing will benefit the entire community and the insurance industry should adopt the new technology in an "anxiety free" way.

"We already use some gene information to determine risk through family medical history and still over 90 per cent of people get life insurance at standard rates," Ralph says.

"While gene-testing may identify high risk clients the bulk of life policies will be at standard rates. Life companies still will want to insure people."

Barlow-Stewart says unless a fair gene-testing policy is developed soon insurance discrimination based on the tests will only increase.

"People should be able to get life insurance up to a certain level regardless of the results of any gene test."