LIFE
The Impact Of Genetic Testing On Life Insurance Coverage The results of genetic testing may affect the ability to obtain life insurance at a competitive rate. By Adrienne Wilson
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ur society’s ever-increasing emphasis on healthy living and longevity has rapidly sparked an interest in direct-to-consumer genetic testing kits such as 23andMe and Ancestry. Also, recent scientific breakthroughs have encouraged the use of genetic testing in the medical field, especially in the treatment of patients who may have an increased genetic predisposition to certain diseases. While knowledge is power, and these new technologies may ultimately assist physicians in minimizing their patients’ future risk of developing certain ailments, there are also drawbacks to genetic testing that may not be readily apparent. One of the most important factors to consider is how the results of genetic testing may 30
affect the ability to obtain life insurance coverage at a competitive rate. Before people apply for life insurance coverage, they must understand both the positive and negative ramifications of submitting to genetic testing. In 2007, 23andMe became the first company to offer D2C genetic testing, and dozens of similar companies have since sprung up in its wake. However, the reliability of D2C genetic testing has come into question. Traditionally, genetic testing has only been available through health care providers who have the experience and medical training to accurately interpret results. A National Institutes of Health study of D2C testing showed an alarmingly high false-positive rate of 40%. Another factor to consider is that there is currently little oversight or regulation of D2C testing companies. Although the popularity of D2C testing is on the rise, the main source of genetic testing information used by life insurers when underwriting a client largely consists of testing conducted by the client’s
InsuranceNewsNet Magazine » August 2021
physician and is located in the proposed insured’s medical records. To address the various issues faced by a life insurer when underwriting a client who has had genetic testing, let’s use the “Five W’s and an H” approach.
Who at the carrier ultimately decides what risk class is assigned to a client who has had genetic testing?
Some carriers follow the guidelines outlined in their respective underwriting manuals, and the final medical decision is made by the underwriter assigned to the file. Depending on the type of disorder, the test result and the manual used, the manual may advise the underwriter to refer the file to the medical director for a final decision. Other carriers advised that they will automatically send the file to their medical director for input or a final decision. One carrier advised that they send all files that include genetic testing results to a specialty risk management team for review. Several carriers advised that
