A total 85%
of the public opined that sharing genetic information would result into refusal to issue policies
or charging higher premium by life insurance companies 26.7%
said that companies would agree to sell the policy at the regular price
and only 19.5% said that genetic information
would result in the issuance of a policy at a lower price. CONSUMER’S
INSURANCE PURCHASING BEHAVIOR:
The knowledge of any increased
risk my tempt the persons to hide the
information and geta a into a life
insurance coverage which is technically know as adverse selection. When asked
about this issue the respondents overwhelmingly expected consumer to withhold unfavorable results of a genetic test from a
the life insurers.
They were more
closely divided on the issue of whether
it would be the wrong to do so, with
results varying in whether the questions
was asked in the affirmative of negative.
OPINIONS ON POSSIBLE REGULATIONS:
A lot of discussion was taking place
in development markets like US on regulations life insurance companies
from obtaining genetic information through regulations. The options available are whether to acquire genetic information either from an applicant’s medical record or can ask proposer to undergo genetic tests.
Around 61% respondents said that the life insurance companies should be not be
permitted to use either of the options . 53% opined that company
should be able to us use genetic information
from existing medical records., but they should not be allowed to
require to applicants to take a genetic
test. Only 15.4% agreed with the statements that companies should be allowed to require all applicants to take a genetic test. Public concerns about genetic discrimination
relative to other issue: 83.1% of
respondents considered genetic
discrimination as a major concern. But in relation to other
concerns like cloning, the economy the
environments access to health care. taxes and
terrorism the genetic discrimination has been rated lowest. However
most of the respondents opined that there is a need for insurance. They
felt that every one has a right to it. Around 70% felt there that every one needs life insurance. Thus
there are diverse opinions ,
concerns and a attitudes towards applying genetic information for underwriting by the insurers.
CURRENT REGULATORY
ENVIRONMENT: After a lot of a
deliberations by various committees and
association of the insurers, moratorium was imposed in UK on insurance industry on the use of predictive genetic
test. This was introduced in 1998 for
three years. In 2001, it was reviewed
and the government decided to
continue with moratorium for another 5
years. According to this, the UK
insurers will continue not to require any genetic test results in respect of
applications for life insurance
products with sums assured
results in respect of applications for
life insurance products with the sum assured of less than 500,000 critical
illness insurance with sums assured of less
than 300,000 with corresponding annual illness insurance with
sums assured of less with corresponding
annual amounts for income protections coverage . Initially during the
period 1997-2001, the insurer were less successful in deploying argument in favor on their right to use genetic test. Finally the
insurer’s arguments of right to use
genetic to protect themselves against the exercise of an options by policy holders was successful and that the allowed the insurers to use
genetic tests information for very large
sums assured. In the United States
also public concerns on genetic tests have led to enactment of laws prohibiting genetic discrimination in health
insurance.
Though the definition of genetic information varies from one country to another and
according to the applicability of law they reflect a general consensus that individual who are asymptomatic should be at a be excluded from the
opportunities to purchase health
insurance because of genetically increased from the opportunities to purchase
health insurance because of genetically
increased risk of illness. In the light of the public concerns their attitudes
and the insurer’s concerns , it is
better to set out general principles to
be advanced by the policies. The general principles that can be adopted are: 1. Do
not discourage at-risk individual from under going genetic testing. 2. Do not coerce individual into a under
going genetic testing. 3. Do not promote harmful social consequences 4.
Make life and a health insurance
coverage available at
affordable rates. 5.
Promote actuarially sound
underwriting and assure the public that underwriting and pricing decision are
fair. 6.
Do not promote or enable adverse
selection. 7. Minimize regulatory complexity. 8.
Anticipate scientific developments .
9. Develop recommendations that are a
politically feasible.