Impact of Genetic Testing on Life Insurance

he Human Genome project generates immense interest in the scientific community though there are also important issues for the business community, particularly insurance companies. The dramatic advances in our understanding of the human genetic code, or human genome, affect our understanding of the determinants of human longevity and this is critical to the profitability of life insurance contracts. Insurance plays an important role in our economy. For example, there were 42 life insurance companies managing approximately AUD $188 billion as at 30 June 2002 and these same companies received AUD $38.1 billion in premium income over for the year ended 30 June 2002. Life insurance contracts are increasingly being sold in combination with superannuation where the contract forms part of the superannuation package. For example up to 85 per cent of all life office assets and 90 per cent of the premiums were classified as superannuation business in 2001 (APRA, 2002). Regardless of whether an individual submits an application form directly to a life insurance company as par