The Association of British Insurers (ABI) has published a research report examining the influence of...
The Association of British Insurers (ABI) has published a research report examining the influence of genetic information on the insurance industry. The report sets out to identify a range of models to be implemented by insurers dealing with genetic information.
The ABI found there are challenges facing the insurance industry when dealing with genetic issues. The research states: 'The Association noted that, while developments in genetic technology had promoted an increase in the availability and reliability of information about hereditary genetic disorders, these same scientific advances posed particular challenges for the insurance industry.'
The report has found that as genetic information becomes more readily available, the insurance industry could be exposed to risks. It states: 'If insurance companies do not or cannot use the results of genetic tests in underwriting then additional costs will be incurred.'
However Gordon Maw, marketing manager at Virgin Direct, said although he welcomes the fact the ABI has looked into future policy, and despite advances in genetic science, it is still difficult to recommend models to the industry.
He said: 'There is still a huge fear the industry needs to protect itself against financial risk. But the industry can do harm in the eyes of the consumer and cause panic ' it can be more harmful to consumer confidence than beneficial to the industry.'
The research follows the decision by the ABI and the Department of Health last month to place a five-year moratorium on the use of genetic testing for insurance purposes.
Mary Francis, director general of the ABI, said: 'We now have breathing space to get this policy right and achieve agreement on the best way forward.'
