While cancer remains a leading cause of death for life insurance policyholders worldwide, significant strides have been made in reducing cancer mortality over the past two to three decades. The United States alone has seen an average annual decline of 1.6% in cancer mortality from 2012 to 2022. New research from the Munich Re Life Science Report predicts this trend will accelerate over the next decade due to groundbreaking advances in cancer research. These breakthroughs may redefine how cancers are understood, prevented, diagnosed, and treated, leading to increased decreases in mortality surpassing those of previous decades. These rapid advancements, however, will have major consequences for the life insurance sector. Agents, advisors, and insurance companies must stay ahead of these changes to manage risks, provide policyholders with better information, and seize new opportunities.
Cancer Genetics Advances
A fundamental shift is underway in how cancer is viewed. The focus is moving from tissue-based diagnostic approaches to those based on the tumor’s unique genetic signature and other available data. This progress is being driven by cancer genomics and artificial intelligence. Genetic profiling of tumors is being used more and more for diagnosis and treatment selection. This allows for better predictions of prognosis and treatment response than traditional methods of diagnosis. As cancer classifications become increasingly based on “genetic signatures” rather than tissue type, it could lead to thousands of unique cancer subtypes.
Enhanced Risk Prediction
Preventative measures have already contributed to the reduction in cancer mortality. AI-powered risk detection can further advance this trend. Using AI, vast amounts of biometric, genetic, and imaging data can be integrated and analyzed to improve cancer risk prediction. This could help to determine the most effective ways of reducing cancer risks.
Early Detection Through Diagnostics
Continued advances in diagnostic and screening methods will be key to achieving earlier cancer diagnoses. Effective screening methods are still lacking for most cancers, even for those with high-risk factors. An exciting breakthrough is liquid biopsy, which analyzes fluids (usually blood) to identify markers indicating the presence of cancer. Though still being developed, liquid biopsy shows immense potential. Researchers are studying liquid biopsy tests that can screen for multiple cancers in symptom-free people; a few of these tests are already available commercially.
While tissue biopsy remains the gold standard for cancer diagnosis, it is involved, costly, and might not provide all the results. Liquid biopsy could be a useful addition or even a replacement in some cases, recognizing genetic patterns that may not be evident in a biopsy. It can guide treatment and identify residual or recurrent disease. In addition, AI has refined identifying malignancy signs in imaging studies and blood, urine, and tissue samples. AI-assisted “machine eyes” are capable of pattern recognition beyond a human observer’s capabilities and are a potential tool for improving the precision with which doctors diagnose breast, lung, prostate, and skin cancers.
Innovative, Personalized Cancer Treatments
Progress in personalized treatments continues, bolstered by tumor genetic analysis and targeted drug development is changing cancer treatment. These therapies have already led to many improved cancer outcomes, offering new hope for cancer patients, and there are many more treatments being developed. A future state could include personalized cancer vaccines, like mRNA vaccines, which use tumor cells to develop factors that can stimulate a tumor-specific immune response. However, such innovations will come at a high financial cost, which could impact health insurance expenses and restrict access in many markets. Many cancers are moving away from being a potential death sentence. Recent studies show how several previously terminal cancers can be managed like other chronic diseases.
Considerations for Agents, Advisors, and Insurers
The collective impact of improved cancer mortality will benefit life insurance businesses but could negatively impact health and longevity insurance businesses. Therefore, insurers must stay well-informed. Life insurance agents, advisors, and insurers should follow critical trends in pricing, underwriting, and claims to match clients with appropriate products. From a pricing perspective, more expensive treatments emerging might adversely affect health insurance rates, potentially increasing the demand for living benefit options for clients. In underwriting, the introduction of direct-to-consumer tests for cancer prediction and detection could lead to anti-selection. Changes to how many cancers are classified and the transition of some terminal cancers to chronic diseases will require adapting insurance product definitions. This may potentially change claims triggers, eligibility criteria, and payout structures.
Although good progress has been made in reducing cancer mortality rates, there remains ample room for improvement. Most cancers are still not diagnosed until they reach advanced stages that are less responsive to treatment. Experts believe that over 40% of cancers can potentially be avoided through preventative measures. Recent advances, however, offer much reason for optimism.
Brad Heltemes, MD, is vice president and medical director of research and development at Munich Re Life US and has 25 years of experience in insurance medicine.
