ABSTRACT
The use of genetic tests as the first stage in the development of predictive medicine clearly raises implications for the insurance and assurance industries. The historical development of insurance has been built on the interplay between the concepts of risk and uncertainty. Genetic technology offers the possibility of sophisticated predictive diagnosis. The insurance industry depends on the use of medical information to make actuarial calculations of longevity. Genetic tests appear to offer a simple and cost-effective means of generating the information needed to accurately calculate the risk an individual brings to an insurance fund. Actuarial principles developed over the centuries provide a normative framework for the practice of underwriting. These principles have been developed primarily in response to the risks presented in the volatile mercantile and marine insurance worlds. Despite their origins these principles are still applied in all areas of modern insurance.
