Genetic testing in the Life & Health insurance industry

Advancements in genomic science and technology have rapidly integrated genetic testing into clinical practice, improving the diagnosis, treatment, and classification of diseases. These have spurred the development of other emerging technologies, such as Multi-cancer early detection (MCED) or liquid biopsy tests, which show promise to screen for the early presence of a wide range of cancers simultaneously. As genetic testing becomes more affordable and accessible, individuals can easily obtain personal genetic information from direct-to-consumer (DTC) suppliers without the intervention of healthcare professionals.

For over two decades, the use of genetic information in Life & Health insurance has been a key topic of debate. Traditionally, insurers do not request applicants undergo genetic testing for underwriting purposes. However, in recent years many markets have implemented stricter regulations and legislation. These are increasingly restricting insurers' access to and use of existing genetic testing data providing insights into an applicant's current health and potential future disease risks.

The insurance industry supports the expanded use of genetic services, as it can reduce morbidity and mortality, and improve health, benefiting both customers and insurers.

However, insurers emphasise the need to access risk-relevant genetic data for accurate underwriting, where legally permitted. Maintaining information symmetry between insurers and consumers is essential to ensure the continued societal and financial benefits of Life & Health insurance.

Our publication offers a comprehensive summary of different regulatory approaches and recent legislative updates in major insurance markets regarding genetic testing. It also examines the industry's views on adverse selection within life and critical illness insurance products, highlights the ongoing significance of family medical history in underwriting, and discusses additional risk factors relevant for Life & Health insurers.