bluuebunny/crossref_metadata_2025_split huggingface dataset:
Principles of Book-keeping for Insurance Students
Authors: Murrie Robert 
Published: July 2016

Although Book-keeping has been for many years one of the subjects of examination prescribed for students of the Faculty, it is an open secret that it has been somewhat neglected by them. One reason for this is that the elementary text-books are rather discouraging, with their continual references to hogsheads of wine and bales of cloth; and another is that the writings on Insurance Book-keeping proper assume a certain amount of knowledge which, I fear, the average student does not possess.In the notes which follow I have endeavoured to begin at the beginning, and to impart as much information as will enable the student to understand the books of an office and the entries made in them. I have made no attempt to teach the art of Bookkeeping or to describe the numerous auxiliary books in use. The forms of these vary very much in different offices and have been fully treated of elsewhere.My paper divides itself roughly into three parts. The first is rudimentary; the second describes the principal books in use, dwelling specially on those which are common to all offices; and in the third I have given specimens and explanations of such entries in the books as a beginner is apt to find difficulty in understanding.
Aviation Risks in Relation to Life Assurance
Authors: Richardson Chas. F. B. 
Published: July 2016

SynopsisThe paper commences with a résumé, with statistics, of the development and extent of aviation in its various branches up to the present time. It goes on to analyse the risk incurred in each, and to discuss principles of assessment of the risk and methods of calculating extra premiums. The duties involved in the various classes of employment connected with aviation are considered, and statistics submitted dealing with accidents and casualties attending commercial aviation in Britain and in the United States. Government supervision and the regulations in force regarding the issuing of certificates of airworthiness and licences to pilots, navigators, and ground engineers are outlined. Royal Air Force flying in its different branches is dealt with and statistics of casualties are given. The answers given to a questionnaire addressed to 60 offices transacting business in Great Britain together with the extras charged for different types of risk are analysed. The question of ordinary life assurance offices reassuring aviation risks with a company specialising in such insurance is discussed. The lack of statistics is commented upon, and stress is laid on the desirability of obtaining as soon as possible reliable statistical bases for the calculation of premiums to meet the demand for cover against aviation risks, a demand which in the nature of things will increase rapidly and must be met. In an Appendix are given the recommendations of the Actuaries' Club of Toronto and a supplementary proposal form in use by a Canadian office for cases where an aviation risk is involved.
The Gold Standard and Modern Conditions
Authors: Craig William Gilbert 
Published: July 2016

SynopsisThe standard on which the currency of this country is based is of
importance to actuaries on account of (a) its bearing on the future real value of the currency in which life assurance contracts are made, and (b) its influence on the relative values of various currencies as affecting investment policy.The advantages of the gold standard and the assumptions underlying it are examined, and it is shown how the validity of these assumptions has been undermined by the gradual development of various factors. It is suggested that there is little ground for anticipating that the presence of these disturbing factors will be temporary.The present monetary position and the greatly changed position as regards the world's gold supplies both in amount and value are discussed and the case for the readoption of the gold standard is outlined. Two types of modified gold standard, (a) a partial gold standard, and (b) a managed gold standard, are considered.The difficulties of a managed standard and the limitations of a common standard are reviewed and several conclusions reached.
New Methods of Approximate Valuation
Authors: Hellig Samuel Robert 
Published: July 2016

SynopsisThe Paper shows :–(a) That if valuations are made using assurance factors taken to two places of decimals only, it is possible by means of a simple modification to bring out results varying inappreciably from those obtained by the standard methods and that such valuations can be made entirely by summation.(b) That the process, which enables multiplications to be dispensed with, can be extended so as to be applicable to valuations by factors taken to three places of decimals.It is also shown that a relation found to exist between net premiums at different rates of interest can be employed, in conjunction with either of the foregoing methods, to estimate the effect of changes in the valuation rate of interest.
Temporary Assurance Mortality, 1924–34
Authors: Bowie W. K. 
Published: July 2016

SynopsisThe Paper deals with the mortality experience of lives assured under Temporary Assurances with British Offices and refers briefly to previous investigations.Particulars for approximately 30,000 policies were obtained and mechanical methods of sorting and tabulating were used.Tables are given comparing the actual deaths with those expected by the A 1924–29 table for Temporary, Decreasing Temporary, and Convertible Term Policies, each subdivided into “medical” and “nonmedical.”
Life Office Investments in a Planned Economy
Authors: Whyte Lewis G. 
Published: July 2016

SynopsisAn examination is made of the more important events in past years, with the object of assessing their consequences on the structure of Life Office investments. Reference is made to certain monetary and trade developments during the period 1919-39. Some aspects of the world depression of 1929-32 are examined. Special attention is paid to the period following the suspension of the gold standard, when Treasury control of interest rates was initiated and developed.Investment problems which arose during the 1939-45 war are then considered. This is followed by an analysis of the factors influencing (1) the yield on British Government securities, and (2) the outlook for British trade. Lastly, the probable effect on the investments of Life Offices of the nationalisation programme is discussed.
Scottish Bankers' Mortality and Marriage Experience, 1923–1943
Authors: Borthwick W. B. , Denholm J. M. , Wallace J. G. , Waugh G. 
Published: July 2016

SynopsisThe results of an investigation into the Mortality and Marriage Experience of the five Scottish Banks whose head offices are in Edinburgh during the period of 1923-1943 are presented. The general lines of the investigation follow those adopted by Mr. Fraser in his similar investigation for the period 1903-1923.The rates of mortality and marriage have been taken out separately for bachelors and widowers, and rates of mortality separately for married men, wives and widows. The relative ages of husband and wife at marriage have also been examined. Comparisons are made between the rates of mortality and marriage shown in the period 1923-1943 with those given by Mr. Fraser for the period 1903-1923. To ascertain the financial effects of the new rates of mortality and marriage, monetary functions required in the valuation of widows' funds by the reversionary method of valuation have been calculated at 3% interest. These monetary functions have been compared with the equivalent functions deduced by Mr. Fraser for the 1903-1923 period. Finally, a valuation of one of the widows' funds concerned has been made at 3% interest, using Mr. Fraser's tables and also the tables based on the 1923-1943 experience.
The Investigation of Extra Mortality
Authors: Springbett T. M. 
Published: July 2016

SynopsisBy the use of the number of deaths in the Continuous Mortality Investigation and the number of impaired lives in a small sample of recently issued policies an estimate is made of the extent of the data likely to be available from the records of the life offices for an investigation into extra mortality. It is estimated that for several impairments the ratio of actual to expected deaths for all ages and durations combined could be obtained with a standard error of 10% or less, but only the broadest conclusions could be drawn as to the distribution of the extra mortality according to age and duration.The experience of normal lives obtained by a control investigation by individual cards is suggested as a standard, two policies on normal lives being included for each policy in the special investigation. The possibility is considered of using the data of the control investigation to throw fresh light on some of the mortality problems which cannot be solved by use of the data as at present returned to the Continuous Mortality Investigation.A brief outline is given of the form an investigation should take and it is suggested that it should also include the investigation of the mortality of certain other special classes including female lives and lives assured for large sums.
Widows' Funds: Some Notes on Theory and Practice
Authors: Scrimgeour D. A. B. 
Published: July 2016

SynopsisThe Paper deals with some of the problems which arise in the valuation of Widows' Funds with special reference to the Widows' Funds of certain professional bodies in Scotland.An analysis is made of data derived from the Scottish Bankers' Marriage and Mortality Experience 1923–1943 (T.F.A., 19, p. 149) with a view to determining the applicability of the Collective Method to a valuation of the “existing” at the close of that Experience.The various factors entering into a Widows' Fund valuation are examined in relation to a particular Fund and the importance of the valuation rate of interest illustrated.The Paper concludes with a discussion of the “reserve for loss on future entrants” often met with in the valuations of such Funds, and of the arguments for and against proposals which have been made for its elimination.
The Mortality Experience of the Gotha Life Office, 1829–1896: An Account of the Investigation and of its Results
Authors: Richmond George William 
Published: July 2016

During the past few years there have been published abroad the results of several important mortality investigations, to which comparatively little attention appears to have been directed here.Of the investigations in question, the first place may be well assigned to that of the Gotha Life Office. It was the earliest published of them; is very complete, and some of the problems investigated therein are either new or have not hitherto been worked out so fully.
On a Method of Calculating the Present Values of Prospective Pensions Based on Salary, and the Expected Amounts of the Future Pension Payments
Authors: M'Lauchlan James John 
Published: July 2016

The method of calculating the values of prospective pensions which I am about to describe differs in some respects from those given in the standard papers on the subject, and will be found, I think, to possess advantages of its own. I shall deal with its application to the case of pensions based on salaries, when the amount of the pension is a uniform percentage of salary for each year of service taken account of.I have followed Mr. Manly in the use of the following symbols (see his paper of 1901—J.I.A. xxxvi, 209), namely, lx to denote the number living and remaining on the active list at age x as given in the Service Table, and Dx and Nx to correspond; rx to denote the number retiring from failure of health between ages x and x + 1, sx to denote the salary receivable between ages x and x + 1, and Dsx to denote Dx X sx. When however lx, Dx, Nx, or Dsx have a circumflex accent, these symbols have the ordinary meanings, and the functions are based respectively on the Pensioners Mortality Table. I have found it necessary to employ also a certain number of new symbols which are described in the Key to the Special Notation (see pp. 31, 32). I have also followed Mr. Manly in the assumptions made in the paper mentioned above, that the retirements or superannuations applicable to any year of age take place at the end of the year, and that the pension commences at the same time and is payable yearly thereafter.
On Some Disputed Questions of Probability
Authors: Whittaker E. T. , Lidstone G. J. 
Published: July 2016

The Mathematical Theory of Probability has, as is well known, two main branches:1°. Direct or Deductive Probability, in which the behaviour of a system is deduced from a knowledge of its constitution.Thus the problem “What is the probability of throwing a double-six in a single cast of two dice” belongs to deductive probability, since we know the constitution of the dice–that they are symmetrical six-sided bodies–and from this knowledge we deduce the probability of a double-six.And 2°. Inverse or Inductive Probability, in which the constitution of a system is inferred from its observed behaviour.As an example of Inductive Probability, suppose we visit a rifle-range and find a man firing at the target. At first we know nothing regarding his skill as a marksman ; but after watching a few shots we are able to form a rough estimate of it, and this estimate becomes more sharply defined and more confident the longer we observe his performance , so that ultimately we attain to a trustworthy knowledge of his “constitution” as a marksman, i.e. we can assign the probability that his next shot will hit or miss.
General Annuity Fund Premium Rates
Authors: Scott W. A. B. 
Published: July 2016

SynopsisThe taxation treatment of the general annuity fund gives rise to additional variables in the calculation of premium rates. The paper discusses premium rates with particular reference to the impact of the tax structure and an attempt is made to determine a basis appropriate to a mutual life office. Some specimen rates applicable to recent conditions are then calculated and compared with market terms at the time of writing.
Valuation of Group Pension Schemes
Authors: Philip G. C. , Robson W. I. S. 
Published: July 2016

SynopsisIn the first part of the paper the general nature of the problem is dealt with in relation to the movements which take place in group pension schemes and the information which is readily available from the normal office records. The choice of valuation date is discussed and some of the differences which exist between private funds and office schemes and which lead to essentially different treatment are noted.The valuation of schemes providing future service pension by the single and annual premium methods is discussed separately, each being developed from a consideration of the simplest form of contract to the more elaborate forms, and approached from the standpoint of the net premium and gross premium methods of valuation. Under each heading theoretical formulas are given and these are considered from the practical standpoint of designing accurate valuation methods and of devising, without appreciable loss of accuracy, approximate methods which reduce considerably the arithmetical work. Throughout, the effort is made to reduce the data to be recorded to a minimum and to use, wherever possible, the data which an office will require for its costing purposes.The paper includes a section on past service pension in which is given a theoretical review of the various methods commonly used to provide pensions.In the appendices it is demonstrated how Trachtenberg's formula may be adapted for valuation of a single premium scheme by the net premium approach and an example is given of the working of the suggested short method in the valuation of an actual scheme together with a valuation “in extenso” for comparison of the results obtained.
The Financial Structure of a Life Office
Authors: Haynes A. T. , Kirton R. J. 
Published: July 2016

SynopsisThe authors' purpose in this paper is to analyse the financial structure of a life office and, in particular, the relationship between the assets and liabilities of a life assurance fund. This analysis is based upon the principle that the guarantees of future capital security and of long-term interest yield involved in the contracts issued by a life office should be backed either by “matched assets” providing equivalent guarantees of capital and interest or by sufficient free reserves to cover the possible adverse effects of departure from the “matched assets” position.In Parts I and II of the paper, the principle of “matched assets” is studied in relation to three model offices representing stationary and increasing funds operating under idealised conditions. For each model office the “standard” date-distribution of assets is determined–the distribution which, so far as possible, will insulate the fund from the effects of fluctuations in the market rate of interest upon existing assets and liabilities. The profit or loss resulting from “going long” or “going short”, as compared with the standard asset distribution, is then investigated against the background of a rise or a fall in the general level of interest rates.
Industrial Assurance Today
Authors: Britt Kenneth J. 
Published: July 2016

SynopsisThe paper attempts to give a factual description of industrial assurance as it is today. Among the matters discussed are :–Definition, origin and development of the businessLegislation affecting itStatisticsExpensesChanges in the type of business transacted in recent yearsThe organization of a large industrial assurance officeNew business, policy conditions, and the calculation of benefitsMethods, bases and machinery used in the valuation of policy contractsProfit sharing and its evolutionFree policies and cash surrender valuesLapse ratesProtection from forfeiture during periods of emergencyCriticismsPositive achievements of industrial assurance and its future
A New Retirement System With Provision for Variable Income
Authors: Maclean J. B. 
Published: July 2016

SynopsisThe paper describes a new type of deferred life annuity which has recently been introduced in the United States and which has been used, so far, principally in connection with the retirement plans of colleges and other educational institutions and, to some extent, in self-administered pension plans of commercial corporations. These annuities do not guarantee specific or equal money payments. The fund, which is divided into an “accumulation fund” and an “annuity fund”, is invested entirely in ordinary shares (“common stocks”). Premiums (contributions) and income from the fund are applied to purchase “accumulation units”, the value of a unit being determined monthly in accordance with stock market prices. At the retirement date of any individual the then current value of the units he owns is used to purchase a life annuity of a fixed number of “annuity units” in accordance with the then current value of a unit in the annuity fund. The successive cash payments to the annuitant are the current values of the fixed number of annuity units which he holds.The purpose of this plan is to provide a variable cash income which will, to some extent, reflect the changes in the cost of living, i.e., to provide a more constant “real income” both in times of inflation and deflation.The paper includes : (1) a short account of the origin and business of the company which has introduced this plan, and which is of a special character, with business limited to educational institutions and their employees ; (2) consideration of the circumstances which led to the adoption of the plan ; (3) a general explanation of the basis of the plan and of its mode of operation ; (4) some illustrations of the results which would have been obtained if this plan had been in operation in the past compared to the conventional type of deferred annuity with fixed payments, including consideration of the relative amounts of cash income realised, the relation of cash income to purchasing power and the extent of fluctuation in income under the “variable annuity” ; (5) reference to the possible use of such a plan by life insurance companies generally and of other means by which variable annuities of this type are being or may be provided.
On the Transaction of Life Assurance and Annuity Business Without Participation in Profits
Authors: Dow J. B. 
Published: July 2016

SynopsisThe paper, which was written at the invitation of the council of the Faculty for submission on the occasion of the Centenary celebrations, traces the growth of without-profit business in the United Kingdom and the trend of the without-profit premiums during the period from 1913. The actuarial bases of the rates are examined and some conclusions reached regarding the profitability of the business.The actuarial considerations which should influence an oflice in determining the volume and the type of new business to be transacted are then discussed for both mutual and proprietary companies, and methods are suggested to assist in determining what proportions of with-and without-profit business should be transacted. Tables are given illustrating the numerical applications of the methods to life assurance business in varying circumstances, and their application to annuity business is discussed.
Application of Computers to Group Schemes
Authors: Gwilt G. D. , Philip G. C. 
Published: July 2016

SynopsisIn this Paper various methods of maintaining records and performing the annual costing and valuation of Group Life Assurance and Pension Schemes are discussed with particular reference to the “single premium” type of scheme.In Part I a simple form of single premium scheme is defined and the problem to be solved is set out. Possible solutions are discussed involving handwritten cards, punched cards and electronic computers.In Part II some of the added complications which arise in practice are introduced and a proposed system involving use of punched cards and a small-scale electronic computer is given in some detail.
Life Insurance in Canada—Some Aspects and Recent Developments
Authors: Westwater G. T. , Burns J. C. 
Published: July 2016

SynopsisThe paper describes certain aspects of life insurance business in Canada under the following headings :—(a) Legislation and regulation, both federal and provincial(b) Taxation(c) Investment of funds(d) Agency system(e) Ordinary life insurance, including a description of some current developments(f) Group pension plans(g) Group life insurance(h) Actuarial and professional societies.In dealing with the above subjects emphasis has been placed on matters where the Canadian practice may differ somewhat from the British.
The Effect of Taxation on Comparative Yields on Life Office Investments
Authors: Jamieson F. S. 
Published: July 2016

SynopsisThe paper points out that, owing to the increasing complexities of U.K. tax legislation, it is no longer possible in the majority of cases to use unadjusted yields for comparative purposes in the selection or review of investments. The three main types of investment in respect of which yield adjustments to allow for the effect of taxation require to be made are considered, which are as follows :—(1)Redeemable investments.(2)Shares of U.K. companies which receive Double Taxation Relief because of their overseas interests.(3)Shares of foreign companies in respect of the dividends on which U.K. shareholders are entitled to claim Double Taxation Relief.The taxation assumptions which require to be made for the calculation of correct comparative yields on the above types of investments are discussed and formulae are given which make allowance for the effect of these assumptions. Comparative tables are also given showing the yields brought out on differing tax assumptions and on two different basic methods of calculating redemption yields.In the body of the paper the assumptions discussed and formulae given refer to a British life office or life fund doing business in the U.K. only; but in a short appendix mention is made of some further adjustments which may be required in the case of life offices which also do business abroad.