Genetic testing, adverse selection, and the demand for life insurance

The dramatic increase in genetic testing for adult-onset diseases has creat ed a debate regarding whether or not insurance companies should be able to use genetic test results in underwriting. We use data from women who have b een tested for the BRCA1 gene mutation along with data from otherwise compa rable untested women to assess the potential for adverse selection in the l ife insurance market when tested individuals know their genetic test result s but insurers do not, Our analyses show that women who test positive for t he BRCA1 gene mutation do not capitalize on their informational advantage b y purchasing more life insurance than those women who have not undergone ge netic testing. Am. J. Med. Genet. 93:29-39, 2000. (C) 2000 Wiley-Liss, Inc.