Kathmandu. The Australian government has proposed a new law to revolutionize the life insurance sector. It has banned the use of predictive or “unfavorable” genetic test results in life insurance underwriting.

All life insurance contracts issued after the Bill goes into effect will not be subject to any genetic risk information when approving or determining premiums. According to the government, it is a shining example of a commitment to public health awareness, personal privacy, and financial justice.

Assistant Treasurer and Financial Services Minister Daniel Mullinoe said the government wants to create an environment where people feel confident about getting genetic testing. “So that they can know about their future health risks and take preventative measures immediately,” he said, “if people can avoid genetic testing for fear of losing their insurance or rising premiums, it could be detrimental to the public health system in the long run.” Therefore, the primary objective of this initiative is to strike a balance between health and financial security. ’

The result of genetic testing is genetic information. This indicates a higher-than-average risk of developing a specific disease in the future, even if people are currently perfectly healthy. While this information is essential for medical and preventative care, its use by the insurance industry runs the risk of discrimination. That’s why the Australian government is trying to legally exclude this information from the insurance process.

Prior to drafting the bill, the Australian government had sought feedback from various stakeholders. These include doctors, geneticists, researchers, consumer rights organizations and the insurance industry. These discussions make it clear that while rapid advances in genetics are opening up new possibilities for human health, they also increase the risk of misuse.

As a result, the use of genetic information without legal protections can jeopardize people’s rights and trusts.

CALI, which represents the Australian life insurance industry, officially welcomed the bill. “This will raise public health awareness and accelerate genetic research and medical development,” said Kristin Coppit, chief executive of CALI. The insurance industry wants people to know their risk, get tested on time, and get preventive treatment if needed. Which is good for everyone in the long run. ’

Australia’s insurance industry first introduced a voluntary standard prohibiting the use of genetic test results in 2019. However, as it was an industry initiative, it was not legally required. This time, the government’s proposal provides a strong legal framework for that initiative, better protects consumer rights and requires all companies to comply with the same rules.

The pace of genetics is so fast that the best-looking test today may be 5 years old or new, more advanced tests can be introduced. To this end, the bill includes a mandatory five-year review of the law to ensure adaptation to new scientific discoveries and technological changes.

If enacted, the impact of the bill will not be limited to the life insurance market. Experts believe it will have long-term positive effects on healthcare, research, biomedical innovation, consumer rights, and financial justice. Increasing public confidence in genetic testing will increase participation in research. This will increase the potential for new medical innovations.