There is no industry-wide code of practice in the Irish life assurance market on how to treat genetic testing. But, according to Irish Insurance Federation life manager, Ms Jennifer Hoban, the issue is being kept under review.

Genetic testing is only in its infancy here, she explained, but the issue is becoming increasingly important and will have to be addressed by insurers as testing becomes more common. The industry wanted to make informed decisions and was open to discussions with other interested parties, she said.

The current position is that there is a general responsibility on any customer taking out life assurance or critical illness policies to fully disclose all relevant facts concerning their medical condition and medical history. Insurance companies consider that this rule means that customers are obliged to disclose the results of any genetic tests that have been carried out.

In the event of a claim, the nondisclosure would only become a problem where what was not disclosed was relevant to the death or illness concerned, she explained.

"Life assurance companies already ask quite detailed questions in their proposal forms about the family history of the potential customer. In a small proportion of cases disclosure of particular conditions will push up the cost of the insurance cover," she said.

With regard to the impact of the results on the cost of insurance for individuals where genetic tests have indicated a predisposition towards a condition or disease, Ms Hoban explained that insurance companies have three options: They can charge a special premium on the normal policy cost, can decline to provide cover, or, can defer cover for the particular condition until that condition has been treated.

Against a background of some unreliable test results insurers need to be careful about genetic testing and will take professional medical advice on any test results before deciding how to treat them, she said. But she added that insurers would be concerned that the nondisclosure of genetic test results by some customers, with subsequent early claims, could push up the cost of insurance for all customers.