RGA White Paper - Genetics and Insurance: Challenges and Opportunities II

This updated paper from RGA discusses the expanding ability to acquire health information from genetic tests. With the pace of investigation and discovery in this area continues to expand and accelerate, genetic testing is now playing an increasingly pivotal role in clinical medicine as well as in life and health insurance.

Information from genetic tests has the potential to improve population mortality and morbidity experience, but challenges still exist for insurers in using such information. Many countries continue to prohibit genetic test results for use in underwriting, even if the results have been shared with an insurer. In addition, as more individuals order their own genetic tests, a growing asymmetry of information is potentially emerging. This may create added challenges and could signal a significant shift in the information balance between consumer and insurer.

The impact of genetic testing on the insurance industry will continue to be an important topic of actuarial research for some time as insurers address its effect on pricing and valuation. Insurance product development opportunities may also emerge to capitalize upon the genetics revolution that have the potential to benefit both the consumer and the insurance industry.

The ultimate objective would be for insurers to partner with insureds so as to leverage genetic advances for mutual benefit and to promote longevity and improve quality of life. RGA is strongly optimistic about the potential for genomic medicine to drive morbidity and mortality improvements and increase healthy life expectancy.

Please click here to read the report.