Financial advisers say they still have doubts about proposed laws banning the use of genetic test results in life underwriting.

“We are concerned about the potential impact of this reform on the cost of life insurance for all Australians,” Financial Advisers Association Australia says in a submission to the Senate Economics Legislation Committee.

The draft legislation places no restrictions on coverage for people who have “concerning” test results, it says

“This could, over time, have a material impact on life insurance claims. While some might consider this to be a low risk at this stage, it is important to be conscious that genetic testing and other predictive forms of medical testing can only be expected to improve over time. Thus, the risk could grow significantly.”

Legislation was introduced in parliament last November, then referred to the Senate committee for inquiry. The committee is expected to report by February 26.

FAAA says it supports action to “remove perceived restrictions” on people undertaking genetic testing.

“However, we are concerned about how this reform could work to the disadvantage of other life insurance policyholders … we request that this review gives careful consideration to the consequences for existing policyholders in terms of premium increases and the prevalence of this reform being used as a means of people seeking access to life insurance payouts that they would not have had access to in the absence of this reform.”