The genetics of breast and ovarian cancer V: application to income protection insurance

Abstract

In Part IV we presented a comprehensive model of a life history of a woman at risk of breast cancer (BC), in which relevant events such as diagnosis, treatment, recovery and recurrence were represented explicitly, and corresponding transition intensities were estimated. In this part, we study some applications to income protection insurance (IPI) business. We calculate premiums based either on genetic test results or more practically on a family history of BC. We then extend the model into an IPI market model by incorporating rates of insurance-buying behaviour, in order to estimate the possible costs of adverse selection, in terms of increased premiums, under various moratoria on the use of genetic information.

Keywords:

• Breast cancer
• BRCA1 gene
• BRCA2 gene
• Family history
• Income protection insurance

Acknowledgements

This work was carried out at the Genetics and Insurance Research Centre at Heriot-Watt University, which receives funding from a consortium of insurance companies through the Association of British Insurers. We thank the sponsors for funding, and members of the Steering Committee and Mr Edward Roche for helpful comments at various stages.