Genetic testing technology has advanced rapidly in recent years, leading to several questions for the Taiwanese insurance market.
Expert on Taiwanese insurance law Liu Bei-yuan told United Daily News that if genetic testing was included in underwriting considerations, the impact on insurance risk assessment might cause the insurance system to lose the spirit of mutual assistance.
There are currently no clear regulations on consumer testing and medical testing projects and institutions in Taiwan. However, the "Measures for the Administration of the Implementation or Use of Medical Equipment for Specific Medical Technical Inspections" (Special Control Law) announced by the Ministry of Health and Welfare in 2021 include high-risk genetic testing in medical decision-making. According to the Special Control Law, medical genetic testing including for cancer, prenatal, neonatal, rare diseases, drug reactions, etc, must be performed in medical institutions.
Centre for Health Innovation at National Yang-Ming Chiao Tung University chair professor and director and Taipei Veterans General Hospital department of hepatobiliary and gastroenterology attending physician Wu Jun-ying warned that applying genetic testing results to insurance assessments may cause "genetic discrimination".
For example, individuals with genetic defects may be unable to purchase insurance or have to pay higher premiums, even if they are healthy.
Mr Liu said, "The collective nature of the insurance system will face a crisis. In other words, the law of large numbers in insurance premium actuarial calculations will be used in specific and individualised risk assessments.”
He also suggested that the Financial Supervisory Commission (FSC) invite scholars and experts to discuss the issue. The FSC can also strengthen supervision over the application of genetic testing-related data, formulate corresponding policies and regulations and regulate whether insurance companies can use these data for risk assessment— and if so, to stipulate the usage scope and criteria.
In addition, insurers should design clear and easy-to-understand policy terms, or they train specialised genetic underwriting personnel to be responsible for matters related to genetic information and compliance with regulations and establish a code for the use of genetic testing in underwriting.