Consumer DNA Testing Poses Risk for Life Insurers, Moody’s Says

The explosion of genetic testing by consumers poses a credit risk to life insurers, Moody’s Investor Service said in a new report.

Insurance companies might benefit from DNA testing that can predict a policyholder’s predisposition to deadly diseases, such as cancer or rare genetic maladies. But because such information isn’t always available to life insurers, a company could be at a disadvantage when writing a long-term policy, Moody’s said in a report June 28.

A person might, for example, take a DNA test and then seek out life insurance if it shows a risk of a fatal disease.

“Historically, life ...