Discussion of Robert L. Brown's "Recent Canadian Human Rights Decisions Having an Impact on Gender-Based Risk Classification Systems"

Authors

Patrick Butler, National Organization for Women's insurance project

Date of this Version

1995

Document Type

Article

Citation

Journal of Actuarial Practice 3 (1995), pp. 181-191

Comments

Copyright 1995 Absalom Press

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.