Consumer Group Wary Of Genetic Testing Code
Sydney Morning Herald
Thursday November 2, 2000
The issue of whether life insurers or superannuation funds should be able to ask potential policyholders to undergo genetic tests so that they can more accurately price premiums has elicited a ``proceed with caution" warning from the Australian Consumers Association.
Ms Louise Petschler, ACA's senior policy officer, financial services, says in the latest issue of ACA's magazine Choice: ``We believe that there is a public benefit in putting brakes on genetic testing in insurance and have recommended that the ACCC [Australian Competition and Consumer Commission] endorse at least part of the proposals put by the Insurance and Financial Services Association."
IFSA wants a voluntary code so insurers have the option of competing by offering lower premiums based on genetic results.
Those with good genes can expect to obtain cheaper insurance cover while those whose genes show a higher risk profile will pay more, or even be denied cover.
Ms Petschler says that this voluntary approach ``fails to fully appreciate the risks involved".
ACA has identified a number of consumer concerns such as who owns the DNA, who and how to control the way it is used, whether the test will stop people getting insurance, or jobs, and whether insurers can ask potential policyholders to undergo genetic tests and exclude those who refuse to be tested.
Testing is expected to be one of the most hotly debated issues at next week's annual superannuation conference in Sydney.
The Association of Superannuation Funds of Australia forecasts that the way insurers deal with the topic will have huge implications for super funds providing insurance cover as well as for annuities and pensions.
Mr Alan Doble, the ASFA conference actuary, pointed out that although underwriting had not been a big issue for superannuation since most members could join under automatic acceptance terms and obtain cover without being asked for evidence of health, if choice of funds is introduced, entry terms for superannuation cover may well change.
© 2000 Sydney Morning Herald