The moratorium on the use of genetic testing may be increased to three years
Life offices are set to see the moratorium on the use of genetic testing increase following a recommendation from the Human Genetics Commission (HGC).
The HGC has recommended the Government introduce an immediate moratorium on the use of genetic test results by insurers that lasts no less than three years.
In its election manifesto, the Government suggested it would follow the guidelines laid down by the commission.
The move follows the recent announcement by the Association of British Insurers (ABI) of a two-year moratorium on the use of genetic tests, in response to the findings of the HGC report into genetics and insurance.
The HGC recommended that policies with a value of £500,000 or more should not be covered by the moratorium as a safeguard against people taking out large amounts of life insurance after they discover they are at risk. However, the ABI introduced a limit of £300,000, after which only those tests approved by the Genetics and Insurance Committee (GAIC) may be taken into account. It is thought that if the Government does decide to legislate then it could force the ABI to extend the limits of its moratorium.
Andrew Stronach, communications director at Virgin Direct, welcomed the news and said that legislation could be the only way forward for the industry. He said: 'The ABI will hold out against increasing the length of the moratorium if they can, but the Government could force them to do it. I think there is a public desire for regulation and legislation could definitely be on the cards.
'It is still up in the air. Self-regulation clearly has not worked and there is no public confidence in it anymore. Different companies had different interpretations. The quickest and clearest way of sorting it out is through regulation.'
However, Suzanne Moore, spokesperson for the ABI, said the organisation would wait for confirmation from the Government before taking any action. She said: 'The Labour party has not actually said this in its manifesto. It suggests it, but it is not said directly, so our view is to wait and see what happens after the election. We are more than willing to work out a solution.
'Our aim in introducing the moratorium originally was to bring some breathing space into the debate and some clarity.'
