The Australian Financial Complaints Authority (AFCA) has expanded its dispute resolution rules to allow complaints about the solicitation or use of genetic test results in life insurance, effective October 8, 2026.
The rule change gives consumers a formal external complaint pathway if they believe a life insurer improperly requested or relied on genetic testing information when making an underwriting or coverage decision.
The Australian Securities and Investments Commission (ASIC) approved the final amendments following a public consultation AFCA conducted in June 2026.
AFCA amended two provisions that had previously excluded certain life insurance underwriting complaints from its jurisdiction.
Rule C.1.4(b) had barred AFCA from considering complaints about underwriting factors leading to non-standard policy terms. The updated rule creates an exception where the complaint alleges an insurer solicited or used protected genetic information contrary to section 33H of the Insurance Contracts Act 1984 (Cth) or section 46(3) of the Disability Discrimination Act 1992 (Cth).
Rule C.1.4(d), which excluded complaints about a refusal to provide cover, now also allows complaints involving the alleged misuse of genetic test results.
The changes apply to both individual life insurance and group policies issued through superannuation funds.
Michelle Kumarich, AFCA’s executive general manager of jurisdiction and systemic issues, said when the consultation opened: “These proposed amendments will ensure we can consider complaints about the use of genetic testing in life insurance.”
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The AFCA rule change is the enforcement mechanism for a regulatory shift that has been building for several years.
The Financial Services Council (FSC) introduced a voluntary moratorium on the use of genetic tests in life insurance in July 2019 through its Standard No. 11. That moratorium was partial: insurers could still request or use genetic test results for policies above certain cover thresholds, according to law firm MinterEllison. The moratorium was later incorporated into the Life Insurance Code of Practice in July 2023.
The federal government announced in September 2024 that it would move to a total ban. The resulting legislation, the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025, cleared the Senate on April 1, 2026. The Law Society Journal reported the Act is effective as of October 8, 2026.
Assistant Treasurer Dr Daniel Mulino said when draft legislation was released in September 2025: “Australians should not be discouraged from undertaking genetic testing.”
Christine Cupitt, CEO of the Council of Australian Life Insurers (CALI), said when the bill was introduced: “No one should be deterred from taking predictive genetic tests that help them to better manage their health.”
For brokers placing life insurance, the practical implications are worth noting.
Clients who have undergone genetic testing now have a formal route to AFCA if they believe an insurer improperly factored those results into an underwriting or coverage decision. Brokers may also field questions from clients about what information insurers can and cannot request during the application process.
One distinction is important: the legislation separates protected genetic information from clinical diagnoses. A clinical diagnosis based on or informed by genetic testing is generally not covered by the ban, meaning insurers can still factor confirmed medical diagnoses into their assessments.
The Financial Advice Association of Australia (FAAA) has called on AFCA to issue guidance on how the rules will work in practice, stating in its consultation response: “AFCA should provide guidance to reflect the likely complex circumstances that may be confronted.”
The FAAA also flagged potential grey areas, noting: “We suspect that there will be situations in the underwriting process where information could be revealed.”
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AFCA received 111,373 complaints across all financial services in 2025, a 14% increase on the prior year and the authority’s highest annual volume on record. Life insurance complaints rose 13% over the same period, though they remain a small share of the overall caseload.
Whether the new genetic testing complaint pathway will generate significant case numbers remains to be seen. The updated AFCA Rules and Operational Guidelines are available on the AFCA website.
