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On the proper Allowance to be made for the Surrender of Policies of Assurance

Published online by Cambridge University Press:  28 May 2015

Charles Jellicoe
Affiliation:
Eagle Insurance Company

Extract

In any Company or Society for the assurance of lives—let it be constituted in whatever manner it may—it is evident that certain rates of mortality and interest are always prevailing; and that such rates are more or less constant throughout any given period, as the causes on which they depend are more or less stationary.

Now, the annual amount required by any such Company to meet its engagements, will entirely depend upon the particular rates which happen to obtain in it; and hence it becomes a question of the utmost importance to such bodies, to determine as nearly as possible how they are situated in this respect.

Type
Research Article
Copyright
Copyright © Institute and Faculty of Actuaries 1849

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References

page 7 note * The provision for contingencies other than the risk.

page 7 note † This retrospective process is necessary, also, to place all who retire on an equal footing.

page 9 note * I cite these two Companies as being of a class “sans peur et sans réproche.”

page 9 note † This is more than the sum required at the present time. For the amount assured is, I believe, about £8,000,000 which at 100 per cent. would give £8000 for the expenses per annum.

page 10 note * The amount assured in this Company is not stated. If we suppose it to be about £7,500,000,—£·240 per cent. would give £18,000 per annum (the expenses including commission); and £·250 per cent, would yield £18,750 per annum, which improved at 3½ per cent. for seven years would amount to somewhat more than £145,656, the proprietors' share of the surplus accrued in 1847. It may at once be gathered from this, that the “progression” was much more rapid than that assumed, since p x must have been equal to p x — 1·490, supposing the above items to be correctly quoted.