By Rachel Williams Fears that genetic testing could lead to product providers refusing some clients ...
By Rachel Williams
Fears that genetic testing could lead to product providers refusing some clients access to life insurance are being overplayed, according to a government actuary.
Chris Daykin, a Government actuary, speaking at the UK forum for genetics and insurance (UKFGI), said that the increased availability of genetic information should have a limited impact on life insurance. Insurers are currently operating under an ABI code of practice that states a genetic test cannot be demanded from an applicant as part of the insurance process.
Daykin said: "Many people
have reacted with alarm to
recent genetic breakthroughs. They worry that they may be refused life insurance if they turn out to have genetic conditions over which they have no control.
"While genetic information could have a bearing on insurability, the practical impact may not be great, at least in relation to life insurance. It is worth bearing in mind that life insurers accept
95% of proposals on standard terms, notwithstanding the wide spectrum of relevant information already available to them on proposal forms regarding lifestyle and medical and family history."
Recent genetic advances have fuelled public debate and raised speculation that genetic testing could leave many people uninsurable. Much concern has surrounded the genetic testing of Alzheimer's disease and whether this will impact on LTC insurance. But at the forum the Continuing Care Conference (CCC) unveiled a new report indicating that environmental factors were much more significant than genetic factors in diseases associated with LTC.
Desmond Le Grys, director of research at CCC, said: "Dr Angus McDonald of Heriot-Watt University has developed an actuarial model for Alzheimer's disease which estimates the likely LTC cost resulting from susceptibility to the disease according to the Apolipoprotein E gene.
"For a small proportion of people, around 2%, there is a higher LTC care cost of around 10%. The sector and the ABI now need to consider whether this degree of 'extra risk' can be absorbed into the standard underwriting pool. Our belief is that many insurers are likely to absorb this degree of risk, in line with current underwriting practice for long term care insurance."
Dr Virginia Warren who chaired the work group and edited the report said: "We need more research into how genetic and lifestyle factors interact, so that we can find the most cost-effective way to reduce that risk."
Paul Cooper, principal underwriter at Swiss Re, said: "It is difficult to say whether this will radically affect insurance. The only change that is likely is if through testing we can get good quality research and data that will allow us to quote more confidently. For example, genetic testing could refine factors already looked at such as blood pressure, family history and obesity. I do not believe we will have a situation, in the foreseeable future where we will be tightening up the terms we are quoting."
