In pursuing the traditional practice of introducing myself officially by an Inaugural Address, I desire unaffectedly to state that any conventionality, which this course may have acquired from custom, is merged and lost in a deep feeling of grateful recognition of your generous confidence and goodwill.

In a paper read a short time ago before the Institute, I endeavoured to show the inexpediency of using, for the purposes of valuation, tables constructed on the principle which characterizes the Northampton table. I did not intend to pursue this particular branch of the subject further; but, finding that more difference of opinion exists in reference to it than I was aware of, and considering that the practice of making valuations by the Northampton table, and by tables framed upon similar principles, is still carried on to a great extent, I am led to offer a few more observations upon the matter previously to entering upon the consideration of some other questions, the correct solution of which materially depends upon a right understanding of this one.

The investigation of the experience, and valuation of the liabilities, of what are known as Clerks' Associations, present some features of special interest; and I have thought that it might he useful to discuss and explain some of the methods that have been employed in analyzing the data, and in deducing therefrom the tables of money values appropriate for the valuation of the risks.

In his inaugural address the President, dealing with the subject of research in connection with climatic and occupational rates of mortality, suggested that the Faculty might consider the advisability of the question being remitted to a committee to consider and report. In consequence a Sub-Committee was appointed by the Faculty Mortality Committee on 21st November 1930 to consider the subject of extra premiums for occupational and climatic risks generally. The time therefore seems appropriate for the submission to the Faculty for discussion of a paper on this subject.

The paper falls naturally into two sections. Section I contains a summary of the work which has been done in the past, chiefly in this country and America : it is hoped that it will form a convenient source of information on the subject, and further, that it will be of use inasmuch as any new method should rest on the basis of a full study of what has been done in the past. It may be mentioned that no attempt has been made to criticise or in any way to indicate the value or otherwise of the studies summarised. Endeavour has been made to include all the more recent studies which have a bearing on the subject under discussion, but it is of course difficult to avoid overlooking some which should have been included.

In Section II consideration is given to the methods used in the past, particularly to those employed in connection with the Joint Occupation Study. This leads to the formulation of an object for the proposed statistical investigation, and attention is then given to the problems of attaining this object with particular reference to the needs and practice of assurance companies in this country. A brief description is given of how the proposed investigation might be undertaken, and the following subjects are dealt with :—

• (a) the hazardous groups to be investigated;

• (b) the methods of recording the data ;

• (c) the methods of collecting the data.

The relation of the proposed investigation to the Continuous Mortality Investigation now proceeding and to any medico-actuarial investigation which, may be contemplated is discussed ; the suggestion is made that a comprehensive system of collecting the data should be instituted and that the information necessary for a standard, an occupational and climatic, and a medico-actuarial mortality investigation should be embodied on one uniform mortality card.

ALL the methods of group valuation submitted to the Institute in the last decade require the calculation of the second sum of the quantities valued, whether in the form of multiplications by —4½, —3½, … 3½, 4½, i.e., the second sum about the centre, or the more convenient second sum about the end. The object of this paper is to show that the α, β method can be transformed so as to avoid this difficulty.

J.I.A. Vol. LXVII, Part I. Page 13, line 18.

For “T.F.A. Vol. XIII, p. 149”

read “T.F.A. Vol. XIII, p. 419”.

This abstract relates to the following paper:

HitchcoxA.N., KlumpesP.J.M., McGaugheyK.W., SmithA.D. & TavernerN.H.ERM for insurance companies – adding the investor's point of view ‐ Abstract of the London Discussion. British Actuarial Journal, doi:10.1017/S1357321711000122