Rule Amendments Aim to Protect Consumers
The Australian Financial Complaints Authority (AFCA) has initiated a public consultation starting 1 June, focusing on proposed rule changes concerning genetic testing in life insurance.
Running until 26 June, the consultation follows a legislative amendment that prohibits life insurers from requesting or utilising adverse genetic information when offering policies. This legislative change aims to offer enhanced protection to consumers in the insurance sector.
Michelle Kumarich, Executive General Manager Jurisdiction and Systemic Issues at AFCA, emphasised, “These proposed amendments will ensure we can consider complaints about the use of genetic testing in life insurance in line with the new protections for consumers.”
Details of the Proposed Rule Changes
The organisation plans to alter Rule C.1.4b) and d) to allow the consideration of complaints regarding the use of adverse genetic testing results. These modifications are designed to align AFCA’s rules with the latest legal standards.
These amendments, subject to consultation and regulatory approval, are expected to take effect from 8 October 2026.
Kumarich highlighted the significance of stakeholder involvement, stating, “Engaging with stakeholders through this consultation is essential to ensuring our Rules continue to meet the needs of consumers and financial firms.”
AFCA encourages all stakeholders to participate in the consultation, particularly its life insurance members. Stakeholders can visit the AFCA website’s Consultation page for more details on submitting a response.
About AFCA: The Australian Financial Complaints Authority is a non-government ombudsman service that provides free, fair, and independent help with financial disputes. It acts as a one-stop-shop for consumers and small businesses in disputes with their financial firms over banking, credit, insurance, advice, investments, or superannuation issues. If parties are unable to reach an agreement, AFCA can issue binding decisions on financial firms.
The consultation process is crucial for adapting to changes and ensuring that the rules remain effective for all involved.
Last updated: 2 June 2026, 2:39 pm
