--- title: "Genetic Testing Labs & Pharmacogenomics: 2 Reasons You Should Care" description: Genetic testing labs & pharmacogenomics represent a growing industry. Insurance agents focused on medical professional liability should take notice! image: https://www.ethosinsurance.com/hubfs/Imported_Blog_Media/Genetic-Testing-Pharmacogenetics-e1464711228383.jpg --- [Skip to main content](https://www.ethosinsurance.com/blog/genetic-testing-labs-pharmacogenomics-2-reasons-care#maincontent) [«  View All Posts](https://www.ethosinsurance.com/blog) [ commentary ](https://www.ethosinsurance.com/blog/topic/commentary) # Genetic Testing Labs & Pharmacogenomics: 2 Reasons You Should Care October 17th, 2014 | 3 min. read By [Jonathan Waterman](https://www.ethosinsurance.com/blog/author/jonathan-waterman) ![](https://www.ethosinsurance.com/hubfs/Imported_Blog_Media/Genetic-Testing-Pharmacogenetics-e1464711228383.jpg) A few years ago my then teenage son came home from school with his science fair project plan and a kiwi. The goal of his project was to test which kind of soap would allow him to most accurately extract DNA from the kiwi. So, he set about performing the experiment on our kitchen counter using only household products.  I couldn’t believe what was happening!  *He was actually extracting DNA from a fruit!* On our kitchen counter!  In that moment I felt ushered into the new century. I’m not a scientist or doctor; I’m a wholesale insurance broker. My interest in genetic testing and pharmacogenomics is mostly related to how I help my retail partners place MPL coverage for their laboratory clients that are doing work in these fields of study.  And, since I’m seeing more and more of these kinds of risks emerge, I figure ***it’s time to point out why agents and brokers should start to care more about it***. First, let’s define some key terms: - **Genetic testing** is nothing new and there are plenty of places to learn about its history. I like the definition used on [this site](http://ghr.nlm.nih.gov/handbook/testing?show=all): “Genetic testing is a type of medical test that identifies changes in chromosomes, genes, or proteins. The results of a genetic test can confirm or rule out a suspected genetic condition or help determine a person’s chance of developing or passing on a genetic disorder.”  Genetic testing is a form of molecular testing and the term is synonymous with DNA testing.  The term also acts as an umbrella term for a variety of specific types of DNA tests. - **Pharmacogenomics** is one specific area of genetic study, which according to [this site](http://ghr.nlm.nih.gov/handbook/genomicresearch/pharmacogenomics): “is the study of how genes affect a person’s response to drugs. This relatively new field combines pharmacology (the science of drugs) and genomics (the study of genes and their functions) to develop effective, safe medications and doses that will be tailored to a person’s genetic makeup..”  This is also known as a form of ‘predictive testing’. So, imagine a DNA test that your physician can order-up on your behalf.  You supply the urine sample, which your physician sends to a ***genetic testing lab specializing in pharmacogenomics***. The results of their study can predetermine how your body will likely react to certain drugs and dosages BEFORE your physician prescribes them.  Welcome to the new century! Ok, but why does it matter to us insurance agents and brokers focused on MPL? ***Here are my two reasons why you should care:*** #### 1. Genetic testing is changing the landscape of healthcare delivery. In [this recent article](http://www.healthcarepackaging.com/trends-and-issues/personalized-medicine/pharmacogenomics-may-change-way-medicine-practiced-and) published on Healthcarepackaging.com, the author explains various benefits in the use of pharmacogenomics.  Two examples stand out: it’s helping physicians match the best drug or treatment to a patient faster than before; and, clinical trials can be made less costly, timely and risky. As an insurance consultant, you need to know that these advancements in medical science are changing how your physician clients interact with some patients and clinical trials. #### **2. Genetic testing labs and pharmacogenomics represent a growth area of opportunity for insurance agents.** Pharmacogenomics and its related genetic testing services are experiencing rapid growth.  A well-known [study by United Healthcare](http://www.unitedhealthgroup.com/~/media/uhg/pdf/2012/unh-working-paper-7.ashx) in 2012 notes: “One forecast predicts that the market for molecular diagnostics could reach $7 billion by 2015, based on its current rate of growth. Another forecast suggests that the availability of new tests is increasing at 10 percent annually with a 20 percent increase in utilization (compared to a 1 to 3 percent a year projected increase for non-genetic diagnostic tests).”  Not too many areas of medicine are seeing this kind of growth rate! So, not only is** the number and scale of labs focused on these developing sciences growing**, but they have **unique medical liability exposures**, so they need an agent who can help them place their MPL insurance correctly. If you’re an agent or broker that focuses on medical liability opportunities, then here’s a **potential opportunity for growth in your own book**! Trust me when I say that you don’t have to be a scientist to work with these accounts.  I barely understood what my son was doing that day in the kitchen with the kiwi, but **I certainly understand the business opportunity that these medical advances create for you**! Feel free to [contact me](https://www.ethosinsurance.com/contact-us) if you want to discuss these opportunities in greater detail.  I promise I won’t create a mess on your kitchen counter in the process! [ Jonathan Waterman ](https://www.ethosinsurance.com/blog/author/jonathan-waterman) Jonathan, the Co-Founder and Chief Operating Officer of Ethos since its inception in 2004, has had a distinguished insurance career dating back to 1992. Beginning as an underwriter specializing in medical liability insurance for PHICO Group, he progressed to roles with Frontier Insurance Group and National Specialty Underwriters, Inc., before co-founding Ethos in 2004. Jonathan's background as a med-mal underwriter and in the wholesale market uniquely positions him to drive operational excellence at Ethos, utilizing his expertise in identifying data patterns. He has contributed to industry dialogue through his blog articles and participation as a panelist at events such as PLUS. Beyond his professional pursuits, Jonathan finds joy in family, a wide range of hobbies including music and sports. 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