Insurance companies fail fairness test
IT’S all in the genes. Genetic research has the ability to improve millions of lives, even save people from an early death. But now it also has the ability to harm us, financially.
The long-term value of genetic testing is huge. It can have big implications to the quality and the length of our lives, including the potential to reduce the impact of diseases or to avoid them completely.
But the barriers to more people having genetic testing is not just about the cost and deciding whether you want to know the results. Unfortunately, the life insurance industry has got its greedy hooks into genetic testing and is using the information against consumers to boost profits.
Insurance companies have the right to see the results of genetic tests and the ability to refuse life insurance cover based on that. Or if they do not refuse cover, they can cherry pick which diseases to cover and increase your premium.
Is this the type of world we want? To make people afraid of having lifesaving tests because they will be screwed by their life insurance if they do?
Take the woman who found she had a gene linked to breast cancer, although she made the decision to have both breasts removed and removed the risk, her insurance company still excluded future claims for death by cancer and doubled her premiums.
Unfortunately, the Government allows insurance companies to govern themselves through their private lobby group, the Financial Services Council. Insurers can do what they like, while consumers have no rights. Consumers must disclose the results of a genetic test to an insurance company, along with any other medical information or tests they may have.
Unfortunately, the attitude of Australian insurance companies means people are deterred from genetic tests. A test that could let them live happier, healthier, longer lives. A test that short-term profitdriven insurance firms can use to punish them financially.
It seems we are damned if we do and damned if we don’t. Every piece of financial wisdom tells us we need life insurance. Given the importance of this, and the widespread recommendation to have it, why does the Government allow companies to discriminate against those who have genetic tests? The answer is because the Government is weak and the finance and insurance firms can do what they like.
Genetic testing can predict the likelihood of someone getting a disease, such as diabetes, Alzheimer’s, coronary artery disease or have a stroke, as well as predict the heritability of cancers and syndromes.
It is outrageous that people are discouraged from learning this information because it will be used against them.
Instead of allowing the in- surance companies to shun and punish people because of their genetic test results, the Government should be banning insurance companies from using this information to discriminate. Australia is well behind other countries, including Canada, France, Ireland, Austria, Singapore, Portugal and Denmark that have an outright ban on using this information.
But, hey, why be fair when you can be greedy? Time for the Government to stop feeding the finance sector with loopholes and to legislate against this practice.