Abstract

Robert L. Brown

Abstract

With the passage of the Canadian Charter of Rights and Freedoms on April 17, 1982, all previous court precedents using gender in risk classification systems became obsolete. Three cases involving issues of discrimination in the use of age and gender now clarify the position of the Canadian judiciary. Based on the decisions in these three cases, this paper presents arguments that can be used in any jurisdiction to defend successfully the use of gender in a property/casualty risk classification system.

Key words and phrases: Canadian Charter of Rights and Freedoms, human rights, gender discrimination, risk selection, automobile insurance, mandatory retirement

Patrick Butler

Abstract

This commentary examines the political and economic influence of demographic groups on rationales for granting exemption from laws prohibiting classification by age or sex, as evidenced in the cases discussed by Robert L. Brown. Age is less subject than sex to manipulation for group advantage. In Professor Brown’s discussion of auto insurance cases, only the influence of group dominance can explain:

• Selective focus on young drivers;
• Indifference to ongoing overcharging of adult women signaled by undisputed 2:1 ratios of cost-related averages; and
• Avoidance of effective ways to evaluate miles of exposure to risk.

Contrary to Professor Brown’s invitation to actuaries to defend the status quo, they are advised to eschew group politics and to acknowledge in legal and public discourse all alternatives to an abuse that the car year statistical unit makes unavoidable---the shifting of costs from higher to lower mileage cars in the same risk class.

Key words and phrases: age politics, sex politics, car year, car mile, exposure units, mileage rating

Robert L. Brown

A Part of the Author's Reply

I apologize to my audience as I write this response because, if you were to check my references, you would find them sadly outdated. I thought that the idea of using a classification system based on mileage had died a natural death. But it has not. I also apologize to Patrick Butler because he will find nothing new in my response. Dr. Butler and other proponents long have argued the legitimacy of mileage as a rating variable. Their ideas have been placed into the public forum at rate hearings, tribunals, court cases, state legislative hearings etc., etc. But to no avail. Why? Perhaps it is a male conspiracy. Perhaps it is the logic of the opposing argument. I will let the reader decide.

What we all agree on is ...

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