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On the Extension of Existing Valuation Methods of Grouping Policies by the Employment of a System of Weights

Published online by Cambridge University Press:  18 August 2016

Albert E. King
Albert E. King
Affiliation:
Equitable Life Assurance Society
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Extract

The advances which have been made in valuation methods were brought home very forcibly to my mind when perusing the records of a valuation made many years ago.

During the past 50 or 60 years the valuation of complicated benefits has been, generally speaking, rendered a comparatively easy task, thanks to the energies of members of this and of other Actuarial Institutes—the Law of Makeham, to take one instance, has been the means of simplifying the solutions of a great number of difficult problems—and the numerous approximations to various intricate expressions, which have appeared from time to time in the pages of the Journal, have further lightened the labour of valuations.

Type
Research Article
Information
Journal of the Institute of Actuaries , Volume 48 , Issue 2 , April 1914 , pp. 121 - 171
Copyright
Copyright © Institute and Faculty of Actuaries 1914

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References

page 125 note * A more accurate correction to employ for the weighted year method would have been

This fact is brought out by Mr. Lidstone in his Note, J. I. A., vol. xlv, p. 483, on the Determination of the Weighted Mean Value of a Variable; the expression as it stands is, however, impracticable for the solution of our problem, because of the labour involved in weighting with both x and x 2.

page 125 note † Corrected values of fw (i.e. f ) are represented in the Tables for convenience by accented symbols, thus: A'w.

page 128 note * Mr. Eldeiton has shown (J.I.A., vol. xlviii, p. 1) that it is possible to fix a maturity age for the whole of the Endowment Assurance business from the outset. If this simplified method be in use the above operation is dispensed with, and, having the age of maturity fixed, we may proceed at once to find our weighted year of maturity.