Future solutions to the debate surrounding insurance and genetics have been revealed by head of heal...
Future solutions to the debate surrounding insurance and genetics have been revealed by head of health at the Association of British Insurers (ABI), Richard Walsh, writes Kirstie Redford.
Speaking at the London COVER Forum, Walsh outlined six options currently being discussed by the ABI that could be implemented to replace the current moratorium, where clients do not have to disclose genetic test results for cover up to £500,000.
Future options outlined were:
• Reimbursement of extra premiums, where premiums are charged, but then reimbursed via a central fund which, in turn, recharges the cost to insurers.
• Subsidising actuarially fair premiums for people at increased genetic risk while establishing a genetic insurance pool run by one company and contributed to by other companies and the Government.
• Continuing with the current moratorium, updating the financial limits so that people with adverse genetic tests can continue to get insurance.
• Cross-subsidisation with no distinguishing between high and low genetic risk and costs being met by all policyholders equally.
• Actuarially fair premiums where individuals have their premiums assessed based on evidence of their own risk, as currently happens with family history and disability.
• Genetic solidarity pools with subsidisation for those with high risk. People would be allocated risk pools based on their accumulated level of risk.
With future advances in genetic testing unpredictable, Walsh said it was important for the industry to consider every possible scenario before opting for one solution. 'We must not have a sys- tem that is alright for now but post-moratorium falls apart. We need to take into account alternative futures and not tie ourselves down. We are dealing not only with insurers' rights to underwrite, but people's perceptions of genetics. It is a complex subject,' he said.
