The Prohibition on Adverse Genetic Testing in Life Insurance: Regulatory Reform and Market Impact

On 8 April 2026, a significant shift in Australia’s life insurance regulatory framework occurred with the Royal Assent of the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026 (Cth) (the Act). The reforms in Schedule 1 of the Act are due to commence on 8 October 2026.

The Act introduces a statutory prohibition on the use of adverse predictive genetic test results in life insurance underwriting, marking a clear departure from the previous reliance on industry self regulation. The policy objective underpinning the reform is to address concerns that fear of insurance consequences is discouraging individuals from undertaking genetic testing or participating in genetic research.

For life insurers, however, the reforms have broader significance. They permanently narrow the scope of permissible underwriting inquiry, reframe compliance risk around operational processes rather than actuarial judgment, and materially increase regulatory exposure across underwriting value chains, including third party and reinsurance arrangements.

To implement the reform, the Act amends the Insurance Contracts Act 1984 (Cth) (ICA) and makes complementary amendments to the Disability Discrimination Act 1992 (Cth) (DDA).

Key changes to the Insurance Contracts Act

The statutory prohibition

The centrepiece of the reform is the insertion of a new Part IV, Division 5 into the ICA. New section 33H prohibits a life insurer from taking “protected genetic information” about a life insured into account when making a decision in relation to a life insurance contract, where that information was solicited or used for the purpose of life insurance underwriting.

The prohibition applies to decisions on whether to offer cover and to the terms and conditions on which cover is offered, including pricing, exclusions and other underwriting outcomes. Importantly, it extends to information solicited or used not only by the insurer, but also by any person involved in, or assisting with, the underwriting process.
A contravention gives rise to both:

• a strict liability offence (60 penalty units); and
• a civil penalty contravention (up to 5,000 penalty units),

with ASIC retaining discretion as to enforcement pathway (criminal or civil action for a contravention).

Protected genetic information: scope and limits

“Protected genetic information” is broadly defined to capture information about whether an individual (or a genetic relative):

• has undergone, intends to undergo, or has been recommended to undergo genetic testing; and
• the information about, and results of, any genetic testing undertaken.

Broad concept of “solicitation”

The Act adopts an expansive definition of “solicit”, capturing any conduct that requests, induces, encourages or incentivises the provision of protected genetic information. A person is taken to solicit protected genetic information merely by recommending or requesting that an individual undergo genetic testing, regardless of whether testing ultimately occurs.

For life insurers, this definition significantly heightens compliance risk across application design, medical evidence collection, underwriting communications and third party interactions.

Underwriting decisions in scope

The prohibition applies to all “life insurance contract decisions”, encompassing decisions on whether to enter into a contract, the terms on which cover is offered, and decisions regarding variations, extensions or reinstatements.
“Life insurance underwriting” is defined broadly as any assessment of risk associated with an individual that is intended to inform such decisions. As a result, protected genetic information cannot be solicited or used at any stage of the underwriting lifecycle.

Exceptions to the prohibition

Voluntary disclosure with consent

The Act provides a limited exception where protected genetic information is knowingly and voluntarily provided by the life insured (or their authorised treating medical practitioner or agent), without solicitation, and with the insured’s express written consent for use in underwriting.

Consent must be express and in writing, in a form approved by ASIC (yet to be released), reinforcing the formal and constrained nature of this exception.

No disadvantage requirement

Even where voluntary disclosure and valid consent exist, the information must not be used in a manner that disadvantages the policyholder, life insured or any third party beneficiary under the contract.
In practice, this substantially limits the utility of the consent exception as an underwriting mechanism and underscores that it is not intended to operate as an alternative pathway for adverse risk selection.

Related amendments to the ICA and DDA

The Act also clarifies that failure by a life insured to disclose protected genetic information does not constitute a misrepresentation, and that the duty of disclosure under the ICA does not require disclosure of such information.
Amendments to the DDA further reinforce the prohibition by providing that discrimination based on protected genetic information is taken not to be reasonable where it results in refusal of an offer of a life insurance policy or adverse policy terms. These amendments affect the operation of section 46 of the DDA which allows discrimination in respect of a life insurance policy if the discrimination is reasonable having regard to various factors. 

What this means for life insurers: practical implications

The amendments represent a recalibration in how genetic information may be used in the life insurance context and will require insurers to take proactive steps well ahead of the October 2026 commencement date to operate within the new framework.

In practice, insurers will need to review underwriting processes to ensure their personnel do not recommend or request individuals to undergo genetic testing, or otherwise solicit prohibited genetic testing information that is used within their underwriting processes, given the broad concept of “solicitation” set out in the ICA. 

Updates will also be required to underwriting guidelines, pricing assumptions and risk models to remove any direct or indirect reliance on genetic test results, including where such information may be embedded in automated tools or legacy systems.  

Insurers will also need to monitor the release of ASIC instruments prescribing the form and content of consent, particularly if they intend for the consent exception to be utilised.

Operational readiness will depend on targeted training for underwriting, claims-handling staff, to ensure a clear understanding of the new prohibitions, the limited role of consent, and the consequences of non‑compliance, particularly in light of the introduction of the strict liability offence under the amendments to the ICA. 

Taking early steps to address these issues will place life insurers in a stronger position to manage compliance risk and respond to heightened regulatory and consumer scrutiny in this area.