Here we go again, the politicians sticking their noses in things they don’t understand. Does that remind you of Trump? This time it’s to prevent the insurance companies the ability of using genetic testing when offering certain coverages, their reason being that such a test is an invasion of privacy.
Insurance is very complex and one of the least understood of business ventures. What they don’t understand is that the insurance product is the only one for which its provider has no knowledge of its cost at the time of sale. Determining its possible cost takes a great amount of information collected and used by their underwriters and actuaries. There is a common joke old by them that the underwriter drives the company’s car while the actuary looks out the rear window and tells him which way to steer.
Statistics and individual conditions and history have to be made available for them to determine an acceptable premium. An auto liability insurance underwriter can obtain a new customer’s driving record. A life insurance underwriter can request a doctor’s exam before offering life insurance. Are these considered invasions of privacy – absolutely not; nor should they be. Insurance companies must retain their ability to obtain information that will adversely affect their products or even refuse to provide coverage.
If they are restricted from doing so, losses will exceed their estimations; that and their costs of doing business will require that higher premiums be required from everyone.
Reinhold R. Klein
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