How Genetic Testing Could Change Health Insurance in the Future

What is Genetic Testing?

Let’s first understand what genetic testing is. Genetic testing is a medical test conducted to identify genes and chromosomes that an individual has inherited from their ancestors. This helps identify the individual's chances of developing a health condition or genetic disorder that their ancestors had.

Genetic testing has become a popular medical test in today’s world, especially for those who want to reduce the risk of inheriting a genetic condition from their ancestors. It can be of different types and for different purposes, such as newborn screening, diagnostic testing, carrier testing, prenatal testing, forensic testing, etc.

Did You Know that genetic testing might have cost around ₹ 2 lakhs to ₹ 3 lakhs in 2004; in today’s time, it can be done within ₹20,000 to ₹35,000?

Impact of Genetic Testing in the Health Insurance Space

Since genetic testing has become popular, players in the medical insurance space are also looking towards it as a means to craft better policies that are centred around an individual’s needs. Given the current trends, here’s how genetic testing could impact the future of health insurance:

Better Analysis of Policyseekers

Genetic testing helps determine and identify an individual's health conditions better, and with predictive testing, the future risks of developing a health condition or disease can be analysed. With a detailed insight into health conditions, health insurance policy seekers are better equipped to explore and choose a policy that best works for their medical needs.

As was the case with Simran Sandilya, it was only after genetic testing that she could purchase a more reliable policy that meets her needs.

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Tailor-Made Plans

Health insurance has one key rule: One size doesn’t fit all. In such cases, genetic testing seems to be a reliable option to identify an individual’s medical needs, which helps insurance providers offer coverage and services tailored to the insured’s needs. Tailor-made plans are the way forward in achieving better results under insurance policies, and with genetic testing becoming increasingly accessible, insurance companies can easily draft policies.

Cost Efficiency for Both Insurer and Insured

Genetic testing helps in either ruling out the speculation of developing a genetic disorder or diagnosing the risk of developing a health condition because of ancestral traits. This can help achieve cost efficiency both for the insurer and the insured.

If a genetic test result suggests or rules out a potential health risk, the insurer may reduce the premium, whereas if the result suggests a higher risk of developing such conditions, the insurer may increase the price and adjust the coverage accordingly.

IRDAI’s Role in Ensuring Privacy and Equality

Over the years, genetic testing has been seen as a tool that might be used against the insured, whether in terms of privacy of the data or discriminatory and arbitrary policies. However, with the growth of genetic testing in India, the Insurance Regulatory and Development Authority of India might have to introduce specific guidelines for insurance companies that bar any misuse of genetic data and ensure equality in offering insurance policies.

Why You Should Be Aware of Genetic Testing in Medical Insurance?

If genetic testing becomes an integral part of medical insurance companies, you, as an insured or policy seeker, must understand the benefits, risks, guidelines, etc, to make an informed decision. Cheers, how your awareness of genetic testing in medical insurance can help you get wholesome coverage.

• Genetic testing can help you look for specific coverage for your health conditions.
• Genetic testing might help you reduce the cost of premiums for your health insurance policy.
• Knowing the guidelines of genetic testing for insurance companies ensures that your data is not being misused.

To Conclude

Genetic testing has been seen as a promising inclusion in the health insurance space, whether it is in terms of improving healthcare outcomes or risk management. However, it is not free of certain cons, such as ethical dilemmas, privacy of genetic data, and discrimination towards the insured, etc. With a balanced approach and accountability of insurance companies towards IRDAI, genetic testing can be fruitful.

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