New Genetic Test Rules Change Life Insurance Underwriting

The reform follows years of concern that people might delay or avoid genetic testing because of fears it could affect access to insurance. Government guidance says the ban applies across the main life insurance categories, including death cover, total and permanent disability cover, trauma cover and income protection. It does not apply to private health insurance, which operates under a different framework.

For households, the immediate significance is not that underwriting has disappeared. It has not. Life insurers may still consider a broad range of non-genetic information when someone is applying for cover, including diagnosed medical conditions, symptoms, treatment, family history, age, occupation, lifestyle and other relevant risk factors. The change is more specific: a predictive genetic test result, or information about whether someone has taken or plans to take a genetic test, should not be used to disadvantage them in the underwriting decision.

There is also an important distinction between adverse and favourable information. The rules allow an applicant to voluntarily provide a genetic test result with written consent where it does not disadvantage them, such as showing they have not inherited a gene variant linked to a condition in their family. That may matter for people whose family history could otherwise raise underwriting questions.

In practical terms, consumers reviewing cover may wish to pay attention to several points:

• whether the application is for a new policy, or a variation to existing cover, on or after 8 October 2026;
• how the insurer asks health and family history questions, and whether any request appears to stray into protected genetic information;
• whether policy documents clearly explain exclusions, loadings, waiting periods and definitions; and
• what complaint pathways are available if a person believes genetic information has been handled incorrectly.

The reform should make genetic testing less financially intimidating for people who may benefit from health information, but it is not a guarantee that cover will be offered, affordable or free of exclusions. Underwriting remains individual, and different insurers can still assess non-genetic risks differently within the law.

The broader lesson for life insurance comparison is that price is only one part of the decision. As genetic testing becomes more common in preventive healthcare, the quality of an insurer’s questions, explanations and claims processes will increasingly matter alongside premiums and benefit amounts.