bluuebunny/crossref_metadata_2025_split huggingface dataset:
The Profitability of Group Pension Business: An Essay in Assessment
Authors: Stalker Alastair C. 
Published: July 2016

SynopsisThe Paper sets out to examine whether existing group pension business written on certain premium bases will prove to be profitable or not. In the first part of the Paper the trends and effects of mortality, interest, income tax and expenses are examined in turn and a table of annuity values is constructed embodying the conclusions drawn.In the second part of the Paper the working of a model group pension scheme for the year 1955 and the results of the year's working are analysed, firstly according to the assumed experience basis, and secondly according to the premium basis.
With-Profits Group Pension Schemes
Authors: Elphinstone M. D. W. , Melton M. W. 
Published: July 2016

SynopsisA small but growing number of life offices are willing to allow participation in profits to group pension schemes. Well-designed schemes, whether with- or without-profits, satisfy quite different requirements from ordinary policies; these requirements are first examined with special reference to their effects on the design of with-profits schemes. Thereafter, certain general actuarial questions are discussed which an office must settle against the background of its own policy and circumstances, once it has decided in principle to transact with-profits schemes. Different possible types of scheme are then considered in the light of these discussions, with special reference to bonus systems and costing plans, and to the prospects of successful competition with without-profits schemes. The paper ends with a short survey of misunderstandings which an office should guard against in dealing with the public.
Some Experiments With Net Premium Valuations
Authors: Beattie J. M. 
Published: July 2016

SynopsisThe paper deals with the valuation of whole life and endowment assurance business in offices whose solvency is not in question and which are writing an expanding business.A survey is made of the valuation methods and bases of major British life offices. A large majority of these offices use the net premium method for their published valuations and make these valuations on mortality and interest bases similar to those used in their current premium scales. A model office is used to study the provision for expenses made by net premium valuations. It is shown that the renewal expenses may often be less than the annual provision for expenses in the valuation, with the result that the valuation makes some provision for the initial expenses of new business.Examples are given showing the rate at which surplus is released by net premium valuations in an expanding business and the rates of reversionary bonus provided are compared with the uniform rates supported by the premiums.Further examples are given showing the rates of reversionary bonus provided by net premium valuations after changes in the experienced rates of interest, mortality and expense, and these reversionary bonuses are compared with the uniform reversionary bonuses supported by the reserves and the premiums under the new conditions.
Mortality in the Past Hundred Years
Authors: Gwilt R. LL. 
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, deals with the broad trend of mortality rates in the hundred years 1850-1950.The paper is in five main parts :—1. The political and social background of the period, in so far as it might affect mortality rates, is briefly discussed.2. The trend of mortality rates during the hundred years is discussed principally with reference to the following six countries which, besides being relatively stable politically during the period, have recorded mortality rates throughout—
England & WalesDenmarkFranceNetherlandsNorwaySweden.The experience in more recent years of a number of other countries is also discussed.3. The relationship between the mortality rates of males and females is examined at various ages for the six countries above mentioned.4. The more recent mortality statistics are analysed according to cause of death in broad groups.5. The paper concludes with a statement on the points which seem to be of special interest, setting out in the form of questions some of the thoughts which spring from them.In the pages which follow (Appendices 1-18) the statistics referred to in Parts 2 and 3 are illustrated by a series of graphs.
Organisation of an Ordinary Life Office Using Punched Card Machines Including a Small-Scale Electronic Computer
Authors: Philip G. C. 
Published: July 2016

SynopsisThe object of the paper is to examine the organisation of an average ordinary life office with a view to the introduction of a small-scale electronic computer operating from punched cards. For purposes of illustration and comparison a model office with 100,000 assurance policies in force operating under certain conditions has been assumed.The general approach employed is:(a) To examine the office system in current use,(b) To consider what improvements may be made in the present system using normal punched card equipment where suitable, and,(c) To discuss what further re-organisation would be required to make use of a computer and what advantages might be expected.The paper is divided into three parts. Part I contains some brief remarks on North American experience and systems suggested for use there. In Part II, methods of maintaining policy records and the possibility of consolidation are discussed. Part III deals with the various services required from policy records, such as valuation and premium collection, and explores the practicability of using a consolidated policy record.In the concluding remarks an attempt is made to assess the economics of using a small computer.Included in the appendices is a brief description of a small-scale computer together with specimen card forms and a programme for carrying out a valuation.
Selection of Risks: American Viewpoint and Practice
Authors: Webster Andrew C. 
Published: July 2016

SynopsisThis Paper outlines the underwriting practice of the life insurance companies in Canada and the United States where, because of the importance of mortality results in the successful operation of a life insurance company, underwriting is considered to be a major executive function.There is a discussion of general underwriting considerations and a more particular discussion of general underwriting practice. This covers the use of an Underwriting Manual, the Numerical Rating System, the use of additional information such as statements from attending physicians, special tests, etc., the question of non-medical insurance and the methods of setting up substandard classes.Mortality investigations of various kinds are considered from the Underwriter's viewpoint which is to test the results of underwriting both in general and on particular impairments. There is a discussion of some current problems such as insuring female lives, insuring hypertensives, and the use of experimental underwriting.The final discussion is on the importance of establishing an underwriting goal for the life insurance company, a goal which should be made clear to the agency force. It also stresses the importance of a good agency force in achieving the desired results.
Automation of Data-Processing in Life Insurance
Authors: Engelfriet J. 
Published: July 2016

Synopsis1. The E.D.P. system which has been developed in the author's company a few years ago was based on the use of a small wired computer with a storage capacity of 30 words of 12 decimals each for data to be processed and (intermediary) results and with a practically unlimited capacity as regards the length of a programme because of the possibility of cardprogramming (48 instructions on each card). The system which in the meantime has been fully realised includes : manually punching of all data given in an application form for a new policy or in a similar internally prepared document with regard to an alteration, conversion or exit of an existing policy and automatically (a) producing of (new) policy record punched cards serving for printing a policy (if necessary) and to be filed for future use, (b) producing of punched cards for renewals, (c) idem for payment of agency commission and (d) of cards containing constants for valuation purposes, (e) updating valuation totals and totals of the accounts for surplus analysis as well as statistical totals. All data in the cards i.e. agency commission, Altenburger constants to be calculated from first principles.2. Since a computer is available with much higher capacity (operation speed ± 64 microsec. for short operations, 500 microsec. for multiplication and division, storage capacity for data and programmes up to more than 30,000 words of 27 bits each, possibility of connecting the computer with a group of punched card machines and with a high speed photoprinter, if needed magnetic tape equipment) a new system has been developed which is based on the following assumptions :(a) it is possible not only to do all calculations by aid of an electronic computer, but also the part of the daily work, which consists of the interpretation (in daily case work as it is centralised at the head office of the author's company) of the rules contained in a policy and its clauses ;(b) it is possible to store information contained in or connected with a policy (including historical data) with the aid of a compact coding system on about two and a half punched cards ;(c) it is possible to use the cards mentioned under (b) for monthly renewals, because of the given speed of the connected reading unit. This leads to the following general structure of data-processing :(a) interpreting of the content of incoming letters and copying with the aid of a typewriter-tape punch this content on a form in a code adapted to the automatic data handling of the computer, producing simultaneously punched tape, (b) selecting the punched cards of the policy involved from the only existing consolidated file, (c) data-processing in the computer and producing automatically all documents needed.3. The system of compact coding has been based on the possibility in the computer to interpret any combination of binary units. Since in this type of storing information data have no fixed localisation the normal programming system where operands are supposed to be found in a known address has to be adapted.
An Investigation Into the Mortality of Impaired Lives
Authors: Clarke R. D. 
Published: July 2016

SynopsisThe paper describes an investigation which is being conducted by a life office into the mortality experienced by certain classes of impaired lives. The investigation was initiated in 1947 and the results for the period 1947-1958 are compared with a control experience of first-class lives.It is emphasised that owing to the limited amount of data, and also to a certain lack of strict comparability in the control experience, the results must be regarded with some caution. The purpose of the paper is, in fact, not so much to communicate statistical information as to describe the methods followed in planning the investigation and to promote a discussion of the feasibility of setting up an investigation under the auspices of the Joint Mortality Investigation Committee to which all life offices operating in Great Britain would be invited to contribute data.The paper presents a coding system for the impairments covered and discusses briefly the results so far obtained within the main groups. For some of the larger groups it has been possible to include a summary analysis by cause of death.
The Development and Incidence of United Kingdom Taxation in Relation to Mutual Life Assurance
Authors: Lundie W. 
Published: July 2016

SynopsisThe paper attempts to show how the present basis of assessment to income tax of mutual life assurance companies has developed by modifying the general taxation system of the United Kingdom to fit special features of life assurance.Section 1 of the paper deals with those aspects of the general tax laws which are relevant to life assurance companies and analyses the position which would arise in the absence of specialised legislation applicable only to life assurance.Section 2 describes the evolution of specialised provisions affecting the taxation of life assurance and the present position is analysed in Section 3. Section 4 contains some suggestions for future legislation to remove anomalies in the present) basis.
Surplus: Two Hundred Years of Actuarial Advance
Authors: Cox P. R. , Storr-Best R. H. 
Published: July 2016

SynopsisThe paper is in the nature of a summary of the authors' book “Surplus in British Life Assurance—Actuarial Control over its Emergence and Distribution during 200 Years”. Copies may be purchased direct from the Institute of Actuaries (price 17s. 6d.). Members and Students of the Faculty may obtain a copy for personal use at the reduced price of 11s. post free. It begins with a survey of the principal factors that have influenced the development of theory and practice in regard to surplus throughout the years. It describes the manner in which surplus first arose in scientific life assurance, and traces how this and other historical developments have had an important effect both in the early days and later as a valid standard of equity was gradually evolved. At the same time the influence of long-dated contracts and of the expectations of the public has been a stabilising factor in spite of rapid changes in the economic and social scene.The characteristics of the nineteenth-century image of equity are described, and the history of the twentieth century in regard to surplus is seen as one of attempts to preserve that image through sharp and contrasting vicissitudes. This idea is explored in some detail for both ordinary and industrial life business.The problems of the present day are reviewed one by one and the paper touches on such matters as economic inflation, the public demand for pension schemes, the introduction of computers and data-processing devices and the prospect of Britain joining the Common Market. Against this background, various modern concepts of equity are contrasted and brief reference is made to matching, immunisation and gearing. Equity in with-profit pension schemes and systems of variable policies are also considered.This general survey leads the authors in the end to ask some critical questions about the performance of the profession throughout its history. These questions relate to the success or otherwise of actuaries in foreseeing the future, in attaining equity and in progressing with the times. The authors attempt to answer them and are able to end on a cheerful note as regards past achievements and to express great hopes for the future, which may well bring a new era for the profession.
Valuation for Surplus
Authors: Springbett T. M. 
Published: July 2016

SynopsisThe paper is largely concerned with discussing what is a suitable valuation basis for deciding the rate of bonus an office should declare if it wishes to maintain this rate of bonus in the future as long as conditions remain reasonably stable.Because of recent developments, such as the substantial proportion of the assets now held in ordinary shares, the reverse yield gap, the present historically high rate of interest and the growth of immediate annuity and other single premium business, a net premium valuation in conjunction with assets at balance sheet values gives an inadequate view of the position of an office. With the advent of electronic computers a more realistic and comprehensive view is now possible, and the paper advocates a valuation of the liabilities on a modified bonus reserve basis with rates of interest and bonus the same as those implicit in the current premium rates, and a valuation of the assets at a notional rate of interest equal to the rate used in the valuation of the liabilities. The various problems arising in the valuation of assets, and especially of ordinary shares, at a notional rate of interest are discussed, and also the adjustments necessary if the assets and liabilities are not fully matched.The final decision on the rate of bonus to be declared must in the end be a matter of judgment, as it depends on many factors which cannot be accurately forecast, such as the future course of the rate of interest, the amount of new business and the rates of premium charged. Nevertheless, it is now possible to make this decision in the light of a very much fuller analysis of the position than has probably been made in the past.
Apportionment of Trust Funds By Mutual Consent
Authors: Donald D. W. A. 
Published: July 2016

SynopsisThe paper records the growth in the number of apportionments of trust funds due to the passing of the “Trusts (Scotland) Act 1961”. It considers the problems, as they arise in Scotland, of allowing for the impact of taxation, both in determining the interests to be valued and in fixing the valuation rate of interest, and it is suggested that the same net rate of interest need not necessarily be appropriate for all the beneficiaries.Numerical examples are given of the effects on funds of varying size and investment content of various valuation assumptions, and the problem of disposing of the potential savings in taxation is discussed. The paper ends with a general section covering some practical points in the preparation of schemes to vary trust purposes.
Valuation of Ordinary Life Assurance Business Using a Medium-Sized Electronic Computer and Magnetic Tape Files
Authors: Wilkie A. D. 
Published: July 2016

SynopsisThe paper describes the system used by one office to produce valuation and mortality statistics and to calculate bonus for ordinary assurances, using magnetic tape files and a Pegasus 2 computer.After a brief outline of certain features of the office, the computer, and the previous system using punched cards, some of the factors that influenced the system finally developed are discussed. An outline of the main system is given, and of some of its subsidiary parts.The policy data and movements system is discussed in detail, and some comments are made on the system of checking the data supplied to the computer. The principal routines to calculate the net premium and value the policy are described fully, and flow charts for the routines are appended. The calculations for analysis of surplus are also described in detail. Some features of the programmes peculiar to a computer system are also discussed, and a detailed example given.It is shown how Flexowriter tapes could be used to replace punched cards for the input of data for new policies, and how new business statistics could be obtained. Finally, the possibility of using the computer system for an emerging costs valuation is explored, and some other possible future extensions of the system are discussed.
Distribution of Surplus Under a With-Profit Group Bonus System
Authors: Robertson E. S. 
Published: July 2016

SynopsisThe paper describes a with-profit group bonus system similiar to a rebate system being operated at the present time. It is suggested that, in view of the present high level of interest rates, the premium rates for such a scheme should be based on an immunization approach, and the paper describes how these rates can be calculated using a computer. It is envisaged that capital profits for with-profit group pension business will be distributed, and a system is outlined for arriving at the distributable surplus, and for distributing it. This system is based on reserves calculated on the premium basis and on a special “market value fund”.
Unit Trusts and Equity Linked Endowment Assurances
Authors: Grant A. T. , Kingsnorth G. A. 
Published: July 2016

SynopsisThe aim of the paper is to discuss some of the problems relating to unit trusts and to the issue of annual premium endowment assurance policies with benefits linked to unit trusts or equities.SECTION I describes the background to unit trust operations including the main requirements for Board of Trade authorization.SECTION II analyses expenses of administration and patterns of expense loadings. It compares the traditional life assurance approach to expense loadings and normal unit trust practice.SECTION III describes the main broad types of assurance linked to unit trusts or equities now in force. It discusses the organizational and taxation considerations involved in issuing such contracts and the desirability of doing so.
Social Security and Occupational Pension Schemes
Authors: Lyon C. S. S. 
Published: July 2016

SynopsisSocial security in the United Kingdom is at a crossroads. Should it become more selective, and if so, what form should the selectivity take ? Should the traditional methods of finance be changed ? What is to be done about the pockets of poverty which still exist ?Occupational pension schemes, too, are coming increasingly under public scrutiny. Are they fulfilling their role adequately ? In what ways do they need to be improved ?The Government is expected to announce next year its proposals for a new State pension scheme. These seem likely to include a change in the financing of National Insurance benefits generally. They may contain features which could set the State scheme and occupational schemes on a collision course.The paper examines some of the issues involved and indicates lines along which future developments might take place. It concludes by describing a way in which State and occupational schemes could continue to work in partnership.
Calculation of Premiums and Asset Shares with Allowance for Changes in Capital Values
Authors: Calder A. N. , Shedden A. D. 
Published: July 2016

SynopsisThe paper sets out to develop a method for measuring the effect which changes in capital value of securities may have on premiums and asset shares. It is shown that any such method will involve an assumption as to allocation of assets to particular sections of business, and to particular policies within those sections of business. Different approaches to the allocation of assets are discussed as a preliminary to the development of formulae which take account of changes in capital value of both fixed interest stocks and equities.Examples are given to illustrate the accumulation of asset shares in funds of different composition under varying investment conditions, on the basis of a “unit trust” approach to the allocation of assets.The paper concludes with some comments on surplus distribution under individual and group with-profits policies.
On the Calculation of Rates of Mortality
Authors: Davidson Andrew R. , Reid A. R. 
Published: July 2016

Synopsis of PaperThe Paper is an attempt to suggest a method of estimating the mortality of the future from the records of the past.In Part I., after a brief discussion of the existing methods of calculating rates of mortality, a new method of employing past results called the “cumulative process” is suggested. The chief distinction between the new method and those already in use lies in the fact that an attempt is made to employ existing knowledge of mortality rates when examining new data. It is claimed for the cumulative process that it is suited to a steadily increasing accumulation of knowledge such as should be the result of systematic mortality studies.