A Timebomb For Insurers Caused By Genetic Testing

November 27, 2009 | Posted by admin

Summary
The dilemmas associated with the launch of genetic testing and how it will be used in the writing of insurance policies, especially in relation to HD.

Insurance covers might not be affected for some time by the debatable subject of genetic testing following the ABI’s recommendation that clients should not be asked by insurers for the results of genetic tests for the next 6 years.

Similar to of ABI ‘s rulings, for example obliterating the Raising Standards Initiative, it is a voluntary as opposed to a compulsory code. Nevertheless it is wonderful news. In practise, only a few of of ABI’s four hundred members are likely to discount the suggestions, as it may put their membership of the ABI in danger.

The low consistrency of genetic tests to be had at present was acknowledged by the Association of British Insurers. For example, purely because a family member died from cancer does not always mean that they will suffer from the disease. However the industry still endorses the test for Huntington’s disease as a dependable indicator when underwriting and comparing life insurance policies.

On life policies over 300,000 pounds, insurance companies could request the results or a genetic test for HD. On the other hand ABI states that only 3 per cent of all life insurance policies are underwritten for over 300,000 pounds.

A Government select committee has uttered scepticism about the effect of the genetic testing for HD and has demanded that the Genetic and Insurance Committee reassesses their evaluation. It is imperative that this amnesty is used to discuss the matter in depth rather than to make it a pretext to disregard genetic testing for the following5 years. Burying our heads in the sand will just exacerbate the situation, as improvements in medical science will be used to encourage much more dependable genetic tests within the next 6 years.

Insurers may then utilise genetic tests when underwriting policies, leaving clients with a genetic lower class, who might have trouble in finding life assurance.

Certain online life insurance companies like the Co-operative Insurance Society, are proposing a public/ private ruling to resolve the problem. They of late used an all encompassing moratorium on the underwriting of life assurance established upon the results of genetic tests. Utilising these tests will be expensive so it is only reasonable that the Government should take their share of the burden with insurers.

An impartial complaints system will be established by the ABI so that consumers have ample rights if they believe that the insurers have handled them unjustly. At the moment there is no documentation of how a system of this type will perform,nevertheless it has to provide results, which purely deliver and be utterly outside of the insurance industry. The Association of British Insurers do police the moratorium themselves, which produce reservations regarding whether clients might get a fair hearing. The encouraging announcement by the Association of British Insurers will be a pointless promise if they don’t.

The Governments Cross party Group have been given a Statement of Concern 47 organisations and individuals have appealed to the Government to to enact a law to prevent the use of genetic test results in insurance.

They are bothered that there is no legal framework to veto the use of genetic testing by employers and insurance companies to make judgments about who is able to obtaininsurance. Furthermore they think that testing is not a conclusive or reliable forecasterof a person’s impending medical health.

Bookmark It