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A Suggestion towards adding a New Feature of Usefulness to the Institute of Actuaries of Great Britain and Ireland

Published online by Cambridge University Press:  18 August 2016

Extract

That the Institute of Actuaries has, during the one-third of a century of its existence (1847-79), been of real utility to the Life Offices—directly by the training of experts, and by the compilation of the Actuaries Experience Tables; and indirectly by lending practical aid to the development of the science of life contingencies—is a fact which will readily be admitted by all who are conversant with its history. That another function may he added to its utility it is my purpose on the present occasion to show.

The business of life insurance has, during the present generation, undergone a very complete transformation. The change began in the year 1844 with the passing of the Joint Stock Companies' Registration Act, 7 & 8 Vict., c. 110. Under this Act facilities were given for the formation of Joint Stock Insurance Companies such as had never before existed. The life insurance associations existing at that date were institutions of good repute; were, in fact, regarded as money-making projects of the highest class, and it was certain, therefore, that promoters would turn their attention in this direction. The failures which had resulted from the Joint Stock Company Epidemic of 1824-5 had passed out of remembrance; the course was clear for a new spurt in the same direction. Hence, a large number of new life offices were, in fact, founded; and in their struggle for existence, an amount of competition was engendered, which (while productive of good in widening the area of the insuring class, by bringing the practice down to the middle, and, gradually, to the lower ranks of the population) has eventuated in the evils whereof I here propose to speak, and concerning which it is my design to attempt a remedy.

Type
Research Article
Copyright
Copyright © Institute and Faculty of Actuaries 1881

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References

page 2 note * Previously to this time, it was the practice of th e life offices to request persons seeking insurance to attend before the Board, when they were accepted or rejected, according as the Directors took a favourable view or otherwise.

page 2 note † The mortality of the period here spoken of may be considered as fairly represented by the Seventeen Offices' Experience (Experience Table No. 1).

page 3 note * The Institute of Actuaries' HM Table (Experience Table No. 2) fairly represents the mortality of this period.

page 4 note * Vide paper by Mr.Giffin, Robt., “Recent Accumulations of Capital in the United Kingdom,” Journal of Statistical Society, vol. xli, p. 1 Google Scholar.

page 4 note † The Life Assurance Companies Act, 1870, omitting to require any return of the new business yearly transacted by the British Life Offices, renders the obtaining of complete details very difficult. I t appears that it is mostly the same offices which make the returns of new business for each year embraced in the comparison.

page 10 note * Among the Fire Offices of the United Kingdom, or at least such of them as belong to the Tariff Association, ther e is a mode of intimation by means of cards, which is of the highest significance.