Genetics and Insurance: What have we Learned So Far?

Abstract

Genetics and insurance is an area unusually exposed to rapid scientific advance, close public and political scrutiny, and popular myth. It may be leading the way towards evidence-based underwriting. This survey paper describes some of the experience gained since actuarial involvement began in the mid-1990s, particularly the vital link with genetic epidemiology. We survey the relevant aims and outputs of genetic epidemiology, mainly relating to single-gene disorders, and the use of genetic epidemiology in actuarial models. The part that actuarial models might play in evidence-based approaches to underwriting and policy-making is discussed.

Keywords:

• Adverse selection
• discrimination
• genetic epidemiology
• genetics
• insurance
• underwriting

Acknowledgments

This paper is based on talks given in Stockholm in November 2001, at a workshop on actuarial research in genetics and insurance organised by the Svenska Aktuarieföreningen. The author is Director of the Genetics and Insurance Research Centre at Heriot-Watt University, Edinburgh, which receives funding from a number of insurance companies through the Association of British Insurers.