Trends -- Genetic Profiling to Bring About Changes in Underwriting Process; Dr. Gary Graham Discusses the Impact of the Human Genome Project on Risk Assessment
09:03 a.m. Jul 29, 1998 Eastern

ST. LOUIS--(BUSINESS WIRE)--July 29, 1998--The year is 2020. You're underwriting a life insurance policy and your client hands over a CD-Rom with his complete genetic profile -- a virtual Rosetta stone for identifying his inherited health risk factors. Although you've uncovered through questioning a history of heart disease in your client's family, you can see from the genetic profile that your client is risk free. Science fiction? "No," says Dr. Gary Graham, executive vice president and medical director of International Underwriting Services. "In the next few decades, underwriting will definitely see the impact of genetic profiling. New genes are being identified every day through the efforts of the Human Genome Project."

Begun in 1990, the U.S. Human Genome Project is a 15-year effort coordinated by the U.S. Department of Energy and the National Institutes of Health to identify all the estimated 100,000 genes and sequences of the 3 billion chemical bases in human DNA. "By the end of the decade, it is predicted that we will have identified all of the genes involved in disease," Dr. Graham says. "Existing genetic tests have the potential to detect inherited disorders such as certain types of breast cancer, cystic fibrosis, Tay-Sachs disease, Duchenne muscular dystrophy, Huntington's disease to name a few. As the 21st century unfolds, investigators will also uncover the mechanisms for heart disease, stroke, diabetes and many forms of cancer. We will see changes in the underwriting process as this genetic information becomes available."

Dr. Graham has seen many trends in underwriting in his seventeen years in the insurance industry. He was also responsible for a new underwriting trend when in 1991 he and Gerald McCann developed Tele-Direct(R) Underwriting, an innovation in underwriting outsourcing.

"Genetic markers will allow us to better stratify the population into appropriate classes," Dr. Graham explains. "Underwriting is `fair' discrimination. If we don't stratify, everyone pays the same rate. This would put a burden on a large segment of the population. For instance, smokers pay a higher rate for life insurance than non-smokers. Without stratification, non-smokers would pay higher rates than they do now even though they have lower risks. In the future when a person undergoes genetic testing, it could mean that certain inherited diseases would be ruled out. For instance, if there is a history of Huntington's disease in a family, that individual will pay dearly for life insurance. Testing gives them the chance to rule out the disease."

Of course, where there are opportunities there are also threats. With this in mind, the Human Genome Project is addressing ethical, legal and social issues raised by the increased availability of genetic information -- who should have access to the information; how will the information be used; who owns and controls the information, etc. Does the right to privacy clash with the right to know? "These questions are good ones and they need to be asked and discussed," says Dr. Graham. "However, there should be a full and accurate disclosure of genetic information to underwriters in order that proper evaluation of risks can take place. In the future, genetic profiles will be seen as one of the tools an underwriter uses along with medical records, medical tests and interviews."

"There is one positive that can't be questioned," Dr. Graham says. "As inherited disease markers are identified, we will better understand the disease, be able to make an accurate diagnosis, develop effective therapies, discover preventive measures and possibly a cure. This will drive mortality rates even lower."

INFORMATION ON DR. GARY GRAHAM

Dr. Graham is a widely recognized leader in insurance medicine with board certification in internal medicine, cardiology and insurance medicine. He has seventeen years in the insurance business. He is a noted authority on life underwriting, risk assessment and mortality trends. He co-founded International Underwriting Services in 1987 with Gerald F. McCann. In 1991, Graham and McCann developed Tele-Direct(R) Underwriting for insurance companies and financial services organizations.

INFORMATION ABOUT INTERNATIONAL UNDERWRITING SERVICES

International Underwriting Services and Tele-Direct(R) Underwriting are part of the Outsourcing Solutions division of NaviSys. NaviSys was formed in 1998 by a merger of three organizations with roots back to 1973: Genelco Incorporated, Beacon Software Development Company, and ECTA Corporation. NaviSys provides a full suite of products and services for the life and health insurance and financial services industries. NaviSys is a leading developer of life, group health, financial, sales illustration and Internet software; a provider of advanced technology consulting; a premier administrator for life insurance and annuities; and a provider of underwriting services. Headquartered in St. Louis, NaviSys has eight offices in the United States and an international office in Mexico City. NaviSys serves clients in 21 countries.

Information about NaviSys products and services can be found on the World Wide Web at www.navisys.com.

Copyright 1998, Business Wire 

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