NZ keeps close eye on Australian enquiry

Recommendations flowing out of the inquiry will be relevant to New Zealand because of its close cultural and business ties with Australia, Investment Savings and Insurance Association chief executive Vance Arkinstall says.

The two countries have similar attitudes towards many social issues and many financial services companies work on both sides of the Tasman, Arkinstall says.

"We’re keeping a close watch on the inquiry because genetic testing is an emotional issue and we as an industry have to respond to public concerns about it."

The inquiry’s finding will also be taken into account when the ISI updates its own code of conduct on genetic information, Arkinstall says.

Under the ISI code insurers cannot request a genetic test be done as part of the underwriting process. But if an individual has already undergone a test, the insurer can ask to see the results.

The code aims to make sure that both insurer and client have the same level of information.

The Australian inquiry, set up in August 2000, will look at the use of genetic testing and information. It is being conducted by the Australian Law Reform Commission and the Australian Health Ethics Commission.

An issues paper was published in November and the final report is expected early next year.

Arkinstall says the discussion paper appears to be reasonable and balanced, though it’s not possible to second-guess what the inquiry’s outcome might be.

One of the key issues being covered is the predictive significance of genetic testing and its actuarial relevance.

Other issues include whether genetic testing is necessary for underwriting, ethical questions surrounding access to insurance, and privacy issues.

The inquiry team is also looking at the approach adopted by other countries, including the United States, the Netherlands and Britain.

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