Human Rights Actuarial Implications

General Principles of Insurance Must ensure that Human Rights considerations do not stop the basic conditions of Insurance being met: –Quantifiable –Random –Large number of similar cases –objectively definable –Affordable

Genetics Need to take into account all factors affecting the likelihood of claim –genetics is essentially no different –affects the likelihood of claim even when no current symptoms Currently follow international standards - can take into account existing information, but not require a customer to undergo a test

Genetics Cont. No current obligation for ongoing disclosure Genetics unique in that a person can chose whether to access certain information Works well when genetic tests not common May become unworkable once genetic tests become more readily available

Mental Illness Risk needs to be objectively definable to be insurable More difficult for mental illness but still possible History of mental illness impacts on the probability of future claim even if currently symptom free –for all conditions

Mental Illness Cont. Exclusions –balance between ensuring wording broad enough to cover condition, and to give customers meaningful cover –Preferable to offer a loading as an alternative –Need option to exclude generally if costs become prohibitive

Health Guidance Note Actuarial Guidance Note Currently in place Industry guidance note is also being developed What is the scope / purpose of actuarial guidance? Ongoing discussions