Australia bans life insurance providers from using genetic data to restrict coverage

Australia has passed legislation that prohibits life insurance companies from denying or limiting coverage based on genetic testing information, a move intended to prevent genetic discrimination, improve public confidence and remove barriers to genetic testing.

The Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2026 was passed by the Parliament of Australia on 1 April 2026, and, according to the Australian government, will apply to life insurance contract decisions made from October 2026. The bill bans insurance companies from using genetic test results, or information as to whether an individual or their relatives have undergone or been advised to undergo genetic testing. While civil and criminal penalties are included for life insurers that violate the ban, the bill does not bar insurers from using information about diagnosed conditions or symptoms. The provision will be reviewed every five years.

'This legislation will be world-leading in terms of what it does, its totality, its strong enforcement,' said Dr Jane Tiller, a lawyer, genetic counsellor and public health researcher at Monash University in Melbourne, Australia, to Medscape News Australia.

The reform follows years of concern that insurance discrimination discourages people from undergoing potentially life-saving genetic testing. Australia has had an industry moratorium in place since 2019, which prohibited insurers from requesting genetic test results before the purchase of life insurance policies below certain thresholds (see BioNews 1005). However, subsequent research, including a June 2023 Monash University stakeholder report, indicated that the moratorium had failed to address and prevent genetic discrimination in life insurance, recommending it be replaced with a legislative ban.

Genetic testing can help transform healthcare by identifying risks earlier and facilitating targeted treatment. However, because insurers assess risk when determining premiums and eligibility, some applicants have feared that such information could result in higher costs or refusal of coverage. Dr Tiller, who had long been advocating for the legislation, told Medscape that some individuals avoided testing entirely due to these concerns, even in cases where such information could have informed healthcare decisions.

'No Australian should ever feel they must avoid a test that could save their life because they fear being frozen out of insurance cover,' said Dr Julian Rait, vice president of the Australian Medical Association. He added that 'removing barriers to testing is critical to realising the full potential of genomic medicine in Australia', with the legislation providing 'the clarity and certainty Australians need.'

The Council of Australian Life Insurers, which represents the life insurance industry in Australia, has also supported the bill, stating that reducing these barriers will increase the uptake of genetic testing.

Australia's approach is broader than protections in other jurisdictions. For example, the US Genetic Information Nondiscrimination Act of 2008 only covers health insurance, while the UK legislative framework continues to largely rely on a voluntary code of practice.