INSURANCE RISK ASSESSMENT IN LIFE AND HEALTH INSURANCE: THE ROLE OF FAMILY MEDICAL HISTORY

The article examines the features of the use of family medical history for assessing insurance risks in life insurance and health insurance (including health insurance), and also identifies the main problematic aspects and challenges of using this actuarial tool. As a result of the study, we find that the key features of using family medical history for assessing insurance risks are following: the comparability and substitutability of the family medical history of the insurance applicant with the results of his genetic tests; the risk of genetic discrimination; the risks of information asymmetry and adverse selection; the risk of the reliability and completeness of the family medical history of the insurance applicant; the unevenness of actuarial significance; the need for scientifically sound interpretation for use as a tool for assessing insurance risks; the frequent disorder of the rights and obligations of insurers and insured persons regarding the disposal of data on the family medical history of insurance applicants; the lifestyle of the applicant for insurance may affect the likelihood of genetic risks of developing diseases, which are determined on the basis of his family medical history. Also, this research study evaluates and analyzes the main advantages and disadvantages of using the applicant's family medical history for insurance purposes during actuarial activities in the field of life and health insurance. We find that currently in Ukraine in order to increase the efficiency of the Ukrainian insurance market in the context of optimizing the use of family medical history to assess insurance risks in life insurance and health insurance (including health insurance), it is necessary to conduct additional research to determine the practical features of using the family medical history of the applicant for insurance during actuarial activities in the field of life and health insurance. The results obtained will allow us to propose the most rational approaches to regulation that would best meet the interests of both insurers and policyholders.