A step forward, but still inadequate: Australian health professionals’ views on the genetics and life insurance moratorium

BackgroundIn 2019, the Australian life insurance industry introduced a partial moratorium (ban) limiting the use of genetic test results in life insurance underwriting. The moratorium is industry self-regulated and applies only to policies below certain financial limits (eg, $500 000 of death cover).MethodsWe surveyed Australian health professionals (HPs) who discuss genetic testing with patients, to assess knowledge of the moratorium; reported patient experiences since its commencement; and HP views regarding regulation of genetic discrimination (GD) in Australia.ResultsBetween April and June 2020, 166 eligible HPs responded to the online survey. Of these, 86% were aware of the moratorium, but <50% had attended related training/information sessions. Only 16% answered all knowledge questions correctly, yet 69% believed they had sufficient knowledge to advise patients. Genetics HPs’ awareness and knowledge were better than non-genetics HPs’ (p<0.05). There was some reported decrease in patients delaying/declining testing after the moratorium’s introduction, however, 42% of HPs disagreed that patients were more willing to have testing post-moratorium. Although many (76%) felt the moratorium resolved some GD concerns, most (88%) still have concerns, primarily around self-regulation, financial limits and the moratorium’s temporary nature. Almost half (49%) of HPs reported being dissatisfied with the moratorium as a solution to GD. The majority (95%) felt government oversight is required, and 93% felt specific Australian legislation regarding GD is required.ConclusionWhile the current Australian moratorium is considered a step forward, most HPs believe it falls short of an adequate long-term regulatory solution to GD in life insurance.

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A step forward, but still inadequate: Australian health professionals' views on the genetics and life insurance moratorium

10.1101/2021.05.25.21257683 ◽

2021 ◽

Author(s):

Jane M Tiller ◽

Louise Keogh ◽

Aideen McInerney-Leo ◽

Andrea Belcher ◽

Kristine Barlow-Stewart ◽

...

Keyword(s):

Life Insurance ◽

Health Professionals ◽

Online Survey ◽

Insurance Industry ◽

Self Regulation ◽

Test Results ◽

Australian Health ◽

Life Insurance Industry ◽

Genetic Test Results

Background In 2019, the Australian life insurance industry introduced a partial moratorium (ban) limiting the use of genetic test results in life insurance underwriting. The moratorium is industry self-regulated and applies only to policies below certain financial limits (eg AUD$500,000 of life cover). Methods We surveyed Australian health professionals (HPs) who discuss genetic testing with patients, to assess knowledge of the moratorium; reported patient experiences since its commencement; and HP views regarding regulation of genetic discrimination (GD) in Australia. Results Between April-June 2020, 166 eligible HPs responded to the online survey. Of these, 86% were aware of the moratorium, but <50% had attended related training/information sessions. Only 16% answered all knowledge questions correctly, yet 69% believed they had sufficient knowledge to advise patients. Genetics HPs' awareness and knowledge were better than non-genetics HPs' (p<0.05). There was some reported decrease in patients delaying/declining testing after the moratorium's introduction, however 42% of HPs disagreed that patients were more willing to have testing post-moratorium. Although many (76%) felt the moratorium resolved some GD concerns, most (88%) still have concerns, primarily around self-regulation, financial limits and the moratorium's temporary nature. Almost half (49%) of HPs reported being dissatisfied with the moratorium as a solution to GD. The majority (95%) felt government oversight is required, and 93% felt specific Australian legislation regarding GD is required. Conclusion While the current Australian moratorium is considered a step forward, most HPs believe it falls short of an adequate long-term regulatory solution to GD in life insurance.

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A Note on the Asset-Specific Nature of Life Insurance Firms

Journal of Interdisciplinary Economics ◽

10.1177/02601079x9700800302 ◽

1997 ◽

Vol 8 (3) ◽

pp. 167-176

Author(s):

Mike Adams

Keyword(s):

Life Insurance ◽

Transaction Cost Economics ◽

Insurance Industry ◽

Asset Specificity ◽

Specific Nature ◽

Life Insurance Industry ◽

Long Duration ◽

Insurance Firms ◽

Physical Assets

The concept of asset specificity is an important feature of the transaction-cost economics literature. This literature predicts that asset specificity – which embraces physical assets, specialist human capital and intangibles such as brands – fosters greater certainty in complicated transactions of long duration. The business of life insurance is a classical example of complex and long-term exchange between the owners and managers of the firm and its customers. This note thus examines the concept of asset specificity and considers its relevance to the life insurance industry. To stimulate further research four hypotheses are put forward.

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Assessing the Technical Efficiency of Traditional and Corporate Agents in Indian Life Insurance Industry: Slack-based Data Envelopment Analysis Approach

Global Business Review ◽

10.1177/0972150917749722 ◽

2018 ◽

Vol 21 (2) ◽

pp. 490-506 ◽

Cited By ~ 2

Author(s):

Ankitha Shetty ◽

Savitha Basri

Keyword(s):

Data Envelopment Analysis ◽

Technical Efficiency ◽

Life Insurance ◽

Insurance Industry ◽

Distribution Channels ◽

Insurance Companies ◽

Data Envelopment ◽

Life Insurance Industry ◽

Significant Difference

The distribution channels play an imperative role in the life insurance industry. In India, traditional and corporate agency are contributing immensely to the profitability of the insurance companies. The challenges faced by the distributional channels such as high attrition, soaring expense ratio and sales inefficiency have created the need to probe into the efficiency aspects of the channel players. In the absence of such studies in India, this article evaluates the technical efficiency of distribution channels in life insurance industry by analysing the data collected from 12 insurance companies for the period 2012 to 2016. The efficiency scores were obtained by applying data envelopment analysis that considered two inputs (number of agents and commission expenses) and two outputs (average business premium and total policies sold). The findings reveal no significant difference in the efficiency scores of bancassurance and traditional agents. Quiet life hypothesis that market share (ratio of premium contribution to total premium) of distributional channels and their efficiency scores are negatively correlated is not supported. Moreover, the slack analysis shows excess inputs per output generated for both the channels. If the companies that scored low in efficiency do not plug the leakages regarding commission as well a number of agents, adverse performance in the long-term and consequent financial crisis are inevitable.

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Estimating China’s Future Life Insurance Market

Asia-Pacific Journal of Risk and Insurance ◽

10.1515/apjri-2019-0027 ◽

2020 ◽

Vol 0 (0) ◽

Author(s):

Jiyue Ma ◽

Fei Huang ◽

Aaron Bruhn

Keyword(s):

Capital Markets ◽

Life Insurance ◽

Insurance Industry ◽

Insurance Market ◽

Economic Expansion ◽

Life Insurance Industry ◽

Specific Factors ◽

Important Indication

AbstractAfter decades of economic expansion, China is transitioning to meet the insurance needs of its aging and increasingly affluent population. Of particular interest to insurers and reinsurers is China’s life insurance industry, which is likely to be globally significant due to its size and scale of opportunity. The long term nature of life insurance will also see it play a key role in China’s financial and capital markets. By uniquely accounting for demographic, economic and insurance-specific factors, we estimate the long term size of China’s life insurance market, giving an important indication of the scale of its future influence.

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Study protocol: the Australian genetics and life insurance moratorium—monitoring the effectiveness and response (A-GLIMMER) project

BMC Medical Ethics ◽

10.1186/s12910-021-00634-2 ◽

2021 ◽

Vol 22 (1) ◽

Author(s):

Jane Tiller ◽

Aideen McInerney-Leo ◽

Andrea Belcher ◽

Tiffany Boughtwood ◽

Penny Gleeson ◽

...

Keyword(s):

Life Insurance ◽

Financial Services ◽

Genetic Test ◽

Insurance Industry ◽

Genetic Research ◽

Evaluation Framework ◽

Test Results ◽

Financial Industry ◽

Genetic Test Results ◽

The Impact

Abstract Background The use of genetic test results in risk-rated insurance is a significant concern internationally, with many countries banning or restricting the use of genetic test results in underwriting. In Australia, life insurers’ use of genetic test results is legal and self-regulated by the insurance industry (Financial Services Council (FSC)). In 2018, an Australian Parliamentary Inquiry recommended that insurers’ use of genetic test results in underwriting should be prohibited. In 2019, the FSC introduced an industry self-regulated moratorium on the use of genetic test results. In the absence of government oversight, it is critical that the impact, effectiveness and appropriateness of the moratorium is monitored. Here we describe the protocol of our government-funded research project, which will serve that critical function between 2020 and 2023. Methods A realist evaluation framework was developed for the project, using a context-mechanism-outcome (CMO) approach, to systematically assess the impact of the moratorium for a range of stakeholders. Outcomes which need to be achieved for the moratorium to accomplish its intended aims were identified, and specific data collection measures methods were developed to gather the evidence from relevant stakeholder groups (consumers, health professionals, financial industry and genetic research community) to determine if aims are achieved. Results from each arm of the study will be analysed and published in peer-reviewed journals as they become available. Discussion The A-GLIMMER project will provide essential monitoring of the impact and effectiveness of the self-regulated insurance moratorium. On completion of the study (3 years) a Stakeholder Report will be compiled. The Stakeholder Report will synthesise the evidence gathered in each arm of the study and use the CMO framework to evaluate the extent to which each of the outcomes have been achieved, and make evidence-based recommendations to the Australian federal government, life insurance industry and other stakeholders.

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Auswirkungen der anhaltenden Niedrigzinsen auf das Versicherungswesen

Zeitschrift für Wirtschaftspolitik ◽

10.1515/zfwp-2015-0204 ◽

2015 ◽

Vol 64 (2) ◽

Keyword(s):

Interest Rate ◽

Interest Rates ◽

Life Insurance ◽

Insurance Industry ◽

Life Insurers ◽

Life Insurance Industry ◽

Low Interest Rates ◽

Rate Environment ◽

German Life

AbstractHelmut Gründl discusses in his paper the effects of the present low interest rate environment on the German life insurance industry. By referring to a recent study of the “International Center for Insurance Regulation”, he assesses insolvency probabilities for life insurers with different capital endowments under different interest rate scenarios. Based on that, he discusses measures of insurance regulation that try to cope with the imminent problems of the life insurance industry. Finally, he has a look at product developments and investment strategies of life insurers in the presence of low interest rates. Hereby, he argues, that life insurance products with lower investment guarantees that are granted for a shorter period of time are regarded as the best remedy to avoid low interest rate problems in the future. Such product development also allows for a more risky investment policy of life insurers that can make life and annuity products more attractive.Rolf Ketzler und Peter Schwark explicate that the very accommodative monetary policy of the ECB and the related extremely low interest rates are involved with major challenges for the German insurance sector, in particular for life insurers. As long-term investors, insurers are not only affected in their capital investment strategy, but also by different households’ retirement saving patterns in response to the low interest rate environment. Several significant steps have already been taken in order to ensure the long-term viability of life insurance. These include changes in the product portfolio as well as new approaches in the investment strategy. In addition, new regulatory requirements have been established to strengthen the risk bearing capacity of life insurers. Given the substantial risks of low interest rates, from an economic point of view the question concerning an appropriate exit from the low interest rate environment needs more attention in the public debate. They argue that in this context, further progress regarding the economic reform policies in the euro zone is still necessary as a condition for the ECB to normalize its monetary policy as soon as possible.Focusing the perspective of German life insurance industry, the article of Heinrich Schradin starts with a brief description and discussion of the financial impact of the persistently low interest rate environment. Based on an empirical data set of German life insurers, the author illustrates actual limitations to generate sufficient investment income for to meet the given specific financial guarantees. Moreover, the core problem, caused by the use of volatile timing-related interest rates for to evaluate long-term cash flows, becomes obvious. The currently observed regulatory interventions are trying to overcome the existential consequences of the so-called fair value measurement. In consequence, the author derives four central theses:1. Life insurance in Germany suffers from insufficient capital adequacy.2. Persistent low interest rates threaten the fulfillment of financial guaranty commitments of German life insurers.3. The generally accepted principals of economic evaluation do not satisfy to the traditional business model of German life insurers.4. Under a business perspective, the development of new life insurance products is inevitable.

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Future investment value of China’s listed life insurance companies’ H shares from the perspective of secondary market

E3S Web of Conferences ◽

10.1051/e3sconf/202021804012 ◽

2020 ◽

Vol 218 ◽

pp. 04012

Author(s):

Lixin Yang

Keyword(s):

Interest Rate ◽

Life Insurance ◽

Insurance Industry ◽

Secondary Market ◽

Insurance Companies ◽

Market Demand ◽

Life Insurance Industry ◽

The Future ◽

The Impact

China’s life insurance industry has just started in the 1990s after the reform and opening up, and its development experience is obviously insufficient, and it has not gone through a very complete life insurance development cycle. No matter from the actuarial technology, the professional level of the agent, the popularization time of the agent system, or the management experience, it is far from the developed areas of the world’s life insurance industry. In addition, many professional investors are worried about the future prospects of China’s life insurance industry because of the long-term existence of a low interest rate environment. However, after reading detailed materials (research papers, books, reviews, etc.), the final conclusion of this report is different from that of other too cautious investors . This report holds that: the current situation and prospect of China’s life insurance H shares meet the conditions of Davis double-click, and the main investors in the secondary market will encounter a unique opportunity to obtain excess returns by investing in domestic insurance H shares. On the level of objective factors, we analyze from the following four aspects: (I) the potential demand for life insurance in China will continue to increase significantly in the future; (II) most of the representative life insurance companies in China have low valuations; (III) the possible style switching in China’s secondary market is conducive to the rise of blue chips such as life insurance companies; (IV) from the long-term perspective of history, the insurance index has significantly outperformed the Shanghai Composite Index, which represents the market. In terms of subjective factors, we consider them from the following four perspectives: (I) the development and problems of life insurance industry in Japan and Taiwan; (II) on the liability side, China’s life insurance industry vigorously develops new products with high business value, so as to resist the impact of low interest rates; (III) the diversification of asset allocation at the investment end of China’s life insurance industry can make the profit of life insurance industry not limited by the interest rate; (IV) the change of service quality at the supply side is conducive to the life insurance companies to tap the potential market demand in China.

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