Australians could be avoiding life-saving genetic testing in case it affects their ability to get life insurance, federal politicians believe.
A parliamentary inquiry has recommended life insurance companies be barred from using predictive genetic testing in determining a person's insurance coverage.
Labor MP Matt Keogh says one woman told the inquiry she'd had a double mastectomy after genetic testing that determined she had the BRCA1 gene and was at risk of breast cancer.
Her life insurance company used the genetic test to remove all cancer coverage from her policy and add a 50 per cent premium loading for death cover, but didn't take into consideration her major risk mitigation surgery.
"The effect of this and many other instances is that Australians will be less likely to access life-saving genetic tests so they do not limit their access to affordable life insurance," he said.
He said an oncologist told him more time was spent talking with patients about the insurance ramifications of tests than the health ramifications.
The report has recommended the Financial Services Council and the Australian Genetic Non-Discrimination Working Group assess the consumer impact of a moratorium on life insurers using predictive genetic information.
But genetic tests should be allowed if a person could demonstrate they were not at risk of a disease.
"However if the FSC and life insurers are unable to get to this position and achieve compliance, legislative intervention will be required," he said, adding in his view it should happen anyway.
Liberal MP Steve Irons said there were areas where the life insurance industry could and must do better.
He wants to see greater claim process transparency for life and disability insurance claimants.
Mr Irons questioned why insurance claims could not be tracked by claimants, despite people being able to easily track parcels online.
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