Media briefing note
Wednesday 28 August, 2002
Australian Law Reform Commission/Australian Health Ethics Committee
Insurance (refer to chapters 22-25) -
Protection of Human Genetic Information (DP 66)
The Inquiry's prelimina
ry view is that the evidence does not support a radical departure at this time from the fundamental principles that have long governed the market for voluntary, mutually rated, personal insurance-namely, that full disclosure is needed to provide for equality of information between the applicant and the insurer.
Many submissions raised concerns about:
-
the use of genetic information in insurance to determine risk;
-
the impact on individual and public health outcomes, where people may feel deterred from undergoing recommended genetic testing for health purposes because of an apprehension that the information may later disadvantage them or their families in obtaining insurance;
-
the potential threat to the viability of the voluntary insurance market if applicants were no longer under an obligation to make full disclosure of all material information, and insurers were thus denied information needed to assess risk accurately;
-
the scientific reliability and actuarial relevance of genetic information, as used in the underwriting process (and required by the exemption granted insurers under anti-discrimination laws); and
-
the availability of effective processes for consumers to question unfavourable underwriting decisions by insurers-such as where coverage is refused, or offered at higher than standard rates, or offered with exclusions.
The Inquiry makes a number of proposals aimed at addressing these issues, including that…
-
insurers should review their consent forms to ensure that applicants have sufficient information to give informed consent to the disclosure of their genetic information;
-
the insurance industry should develop and publish policies on the appropriate uses of family medical history for underwriting purposes;
-
the industry should apply for a Public Interest Determination under the Privacy Act to legitimate the collection of family medical history information from applicants without the knowledge or consent of the genetic relatives to whom the information relates;
-
the proposed Human Genetics Commission of Australia (HGCA) should be assigned the role of approving the use and interpretation of particular genetic tests for insurance underwriting purposes;
-
insurers be obliged to provide clear and meaningful reasons for unfavourable underwriting decisions based on genetic information;
-
the insurance industry should develop improved review and appeal mechanisms for applicants who have received an unfavourable underwriting decision based on genetic information;
-
the insurance industry should enhance its policies and practices in relation to the training and education of industry members and authorised representatives in relation to genetic information; and
-
the HGCA should monitor the experience of the insurance industry in using genetic information in underwriting, both in Australia and overseas, with an eye to reviewing Australian insurance practices at a later stage.