Insurance companies have been using the results of people's genetic tests to deny them cover, or raise the cost of their premiums, new research shows.

Current settings regulating the life insurance industry are failing to protect consumers, the research published in Public Health Research and Practice on Tuesday found.

Genetic tests allow doctors to identify possible health risks in an individual's genetic code, but are also able to be accessed by insurers as they underwrite premiums.

"It's quite a big issue that we've been working on for a number of years now," study lead author Jane Tiller told AAP.

"Life insurance companies are able to, and do use people's genetic results to deny them cover or increase the cost of their life insurance premiums."

Previous research from Ms Tiller has also revealed that people may be avoiding genetic testing over concerns about being discriminated against by their insurer.

The researchers called on the commonwealth to implement new laws to protect consumers from having their genetic information accessed by insurers, saying the current settings have not lived up to the recommendations set by the committee.

The research compared recommendations from a 2018 parliamentary inquiry into the sector, which urged banning genetic testing in life insurance underwriting, with the current policy.

The sector is partially restricted from accessing genetic testing results for some types of insurance, for those of $500,000 or less, and for income protection of $48,000 or less.

However, those restrictions are voluntary and self-regulated by the industry and operate without oversight by the government, she added.

Otherwise, all genetic testing results must be handed over to insurers for all types of life insurance.

In comparison, UK insurers are prohibited from accessing genetic testing results, except for people with the rare and inheritable Huntington's disease.

Ms Tiller said the issue has caused ongoing concern among health professionals, and research she conducted last year showed 90 per cent believed the insurance industry needed further oversight.

Her research had shown people were abandoning having genetic tests because of a fear of discrimination, she added.

"Once people hear that life insurance discrimination might be a problem, a number of people say, 'Oh, in that case, I don't want to have testing'," she said.