The Federal Government has announced it will legislate a ban on the use of adverse predictive genetic test results by life insurers.

The reforms effectively prohibit life insurers from using applicants’ adverse genetic results to determine policy coverage or claims outcomes. The ban will not be subject to any financial limits, caps or exceptions, the Government confirmed.

At present, life insurance companies in Australia can legally use applicants’ genetic test results to either deny coverage or increase the cost of premiums.

The ban brings Australia into line with Canada, which was among the first to introduce a complete legislative ban on the use of genetic test results for underwriting insurance in 2017.

Under the law change, applicants for life insurance in Australia will still, however, have the option to disclose favourable genetic testing results. This will enable applicants to share with insurers, for example, that they do not carry a pathogenic disease that may be common in their family.

Health insurers meanwhile are already banned from using genetic results or any other risk factors to deny coverage or change the cost of premiums.

Financial Services Minister Stephen Jones said the ban places Australia among the world leaders in banning the practice, adding that it will ensure there are no barriers for individuals to seek genetic testing for detecting health problems.

“This change will give Australians the confidence to undertake genetic testing without fear it will impact their ability to access financial security through life insurance.”

The Government earlier this year consulted on options to address genetic discrimination in life insurance, with Jones noting that more than 97 per cent of the 1,000 total submissions supported a total ban on the practice.

The Council of Australian Life Insurers (CALI), peak body for the life sector, said it was fully supportive of the Government’s ban.

“It’s good for Australians and their families, it’s good for industry and it’s good for the Government,” said CALI chief executive Christine Cupitt during a media conference today.

“Life insurers want people to access the information they need to make informed choices about their health. We have never wanted to do anything to discourage people from taking a genetic test and managing their health in a preventative way.”

Cupitt further stressed that Australia’s life insurers “have never, and would never, require someone to take a genetic test for the purposes of underwriting. Any suggestion otherwise is simply incorrect”.

The total ban will be subject to a five-year review, which Cupitt said would “ensure the legislation keeps pace with the way genetic tests are used in the future”.