ACTUARIAL ACTIVITIES IN INSURANCE: MODELS OF APPLYING GENETIC INFORMATION FOR LIFE INSURANCE AND CRITICAL ILLNESS INSURANCE
DOI:
https://doi.org/10.15407/economyukr.2025.11.073Keywords:
insurance; genetic information; insurance risk assessment; actuarial activities; UkraineAbstract
Models of applying genetic information in the context of actuarial activities in human life- and health-related risk insurance are defined and described, the actuarial significance of types of genetic information, which decisively affects the features of insurance risk assessment and/or establishing any other terms of life insurance and critical illness insurance contracts, is substantiated.
Methods of applying genetic information in actuarial activities are divided into corresponding models depending on the types of insurance and types of genetic information used both for insurance risk assessment and for actuarial activities in the insurance in general.
It is shown that in most of the models described, genetic information about the probability of disease occurrence is used specifically in critical illness insurance. It is determined that for insurance companies in the context of actuarial activities, one of the main types of genetic information is, firstly, genetic test results (including on the carrier status for a certain gene or the presence of a genetic mutation, for example, in the APKD1, APKD2, BRACA1, BRACA2 genes; the presence of the PSEN1 gene), and, secondly, the family medical history of the insurance applicant.
The actuarial significance of genetic information on the probability of developing diseases in insurance risk assessment and/or establishing any other terms of the insurance contract is studied and described. It is shown that one of the main factors in the growth of insurance premiums for life- and health-related risk insurance applicant is insurance company’s awareness of data on the increased genetic risk of developing the relevant disease for insurance applicant.
References
Arych, M., Joly, Y. (2022). Genetic Discrimination in Access to Life Insurance: Does Ukrainian Legislation Offer Sufficient Protection against the Adverse Consequences of the Genetic Revolution to Insurance Applicants? Laws. 11(2). https://doi.org/10.3390/laws11010002
Tiller, J., Delatycki, M. (2021). Genetic discrimination in life insurance: a human rights issue. Journal of Medical Ethics. 47(7). 484-485. https://doi.org/10.1136/medethics-2021-107645
Gutiérrez, M., Macdonald, A. (2003). Adult polycystic kidney disease and critical illness insurance. North American Actuarial Journal. 7(2). 93-115. https://doi.org/10.1080/10920277.2003.10596092
Gutiérrez, C., Macdonald, A. (2007). Adult polycystic kidney disease and insurance: A case study in genetic heterogeneity. North American Actuarial Journal. 11 (1). 90-118. https://doi.org/10.1080/10920277.2007.10597439
Macdonald, A., Pritchard, D. (2001). Genetics, Alzheimer’s disease and long-term care insurance. North American Actuarial Journal. 5(2). 54-78. https://doi.org/10.1080/10920277.2001.10595985
Gutiérrez, M., Macdonald, A. (2004). Huntington’s disease, critical illness insurance and life insurance. Scandinavian Actuarial Journal. 4. 279-313. https://doi.org/10.1080/03461230310016992
Macdonald, A., Yu, F. (2011). The impact of genetic information on the insurance industry: conclusions from the 'bottom-up' modelling programme. ASTIN Bulletin: The Journal of the IAA. 41(2). 343-376. https://doi.org/10.2143/AST.41.2.2136981
Lu, L., Macdonald, A., Waters, H., Yu, F. (2007). A dynamic family history model of hereditary nonpolyposis colorectal cancer and critical illness insurance. Annals of Actuarial Science. 2. 289-325. https://doi.org/10.1017/S1748499500000373
Macdonald, A., Waters, H., Wekwete, C. (2003а). The genetics of breast and ovarian cancer II: A model of critical illness insurance. Scandinavian Actuarial Journal. 1. 28-50. https://doi.org/10.1080/03461230308485
Macdonald, A., Waters, H., Wekwete, C. (2003b). The Genetics of Breast and Ovarian Cancer I: A Model of Family History. Scandinavian Actuarial Journal. 1(1). 1-27. https://doi.org/10.1080/03461230308486
Haçarız, O., Kleinow, T., Macdonald, A. (2020). Genetics, insurance and hypertrophic cardiomyopathy. Scandinavian Actuarial Journal. 2021(1). 54-81. https://doi.org/10.1080/03461238.2020.1795714
Hacariz, O., Kleinow, T., Macdonald, A. (2022). An actuarial model of arrhythmogenic right ventricular cardiomyopathy and life insurance. Scandinavian Actuarial Journal. 2. 94-114. https://doi.org/10.1080/03461238.2021.1930136
Macdonald, A., Waters, H., Wekwete, C. (2005а). A Model for Coronary Heart Disease and Stroke with Applications to Critical Illness Insurance Underwriting I: The Model. North American Actuarial Journal. 9(1). 13-40. https://doi.org/10.1080/10920277.2005.10596182
Joly, Y., Ngueng Feze, I., Simard, J. (2013). Genetic discrimination and life insurance: a systematic review of the evidence. BMC medicine. 11(25). https://doi.org/10.1186/1741-7015-11-25
Howard, R.C.W. (2016). Genetic Testing Model for CI: If Underwriters of Individual Critical Illness Insurance Had No Access to Known Results of Genetic Tests. Report to CIA Research Committee. Document 214082.
Arych, M., Shchubelka, Kh., Wolfsberger, W., Oleksyk, T. (2024a). Does Ukraine need a specific regulation related to the applying of genetic information for risk assessment in insurance? Finance of Ukraine. (2). 85-100. https://doi.org/10.33763/finukr2024.02.085 [in Ukrainian].
Arych, M. (2025). Regulation of the Insurance Market: Has the Latest Version of the Law of Ukraine «On Insurance» Changed the Approaches to Accessing Human Genetic Data for the Evaluation of Insurance Risks? The Problems of Economy. 1(63). 281-287. https://doi.org/10.32983/2222-0712-2025-1-281-287 [in Ukrainian].
Arych, M., Shchubelka, Kh., Wolfsberger, W., Oleksyk, T. (2024b). Use of genetic information for insurance risk assessment in Ukraine: regulatory and legal framework. Economy of Ukraine. 67. 5(750). 78-92. https://doi.org/10.15407/economyukr.2024.05.078 [in Ukrainian].
Macdonald, A., Pritchard, D. (2000). A mathematical model of Alzheimer’s disease and the ApoE gene. ASTIN Bulletin. 30(1). 69-110. https://doi.org/10.2143/AST.30.1.504627
Gui, E., Macdonald, A. (2002). A Nelson-Aalen estimate of the incidence rates of early-onset Alzheimer's disease associated with the Presenilin-1 gene. ASTIN Bulletin. 32. 1-42. https://doi.org/10.2143/AST.32.1.1012
Macdonald, A., Waters, H., Wekwete, C. (2005b). A Model for Coronary Heart Disease and Stroke with Applications to Critical Illness Insurance Underwriting II: Applications. North American Actuarial Journal. 9(1). 41-56. https://doi.org/10.1080/10920277.2005.10596183
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Publisher PH "Academperiodyka" of the NAS of Ukraine
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
