Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1917-01-10
Life Insurance IN 1916

FOR the hrst tune IN the history OF American
life insurance, the new business written in one
year has exceeded four billion dollarsl
Estmators Of the insurance yield OF 1915,
based upon preliminary reports from companies,
have figured that the gain in new insurance
written will be approximately rs per cent over
the preceding year
The new insurance written in 1915 aggregated
$3623,O00,000 To raise this figure to four billion
dollars would require an increase of only 10 per
cent
Accordingly, the statement may be safely
made, in advance of the tabulated official figures,
that considerably over four billion dollars-prob
ably nearer four and one-half billion dollars-of
new insurance was purchased last year by the
American people, the greatest buyers of life in
surance in the world.
Inasmuch as the European war has practically
confined the operation OF American company to
American territory the stupendous increase in
insurance written indicates that the per capita
purchase of life insurance in 1916 maintained
a favorable ratio with the per capita purchase of
any other commodity, the greatest buying year
in the annals Of American business.
Any effort to determine the amount OF per
capita insurance purchased among eligible lives
in 1916 would be at best only approximation
but seemingly conservative estimate places the
amount of new insurance taken by eligible lives
last year at $40 per capita.
The population of the United States is slightly
over l00000000. Eliminating from this number
all those who are disqualified for insurance by
reason OF age, impairments or occupation, the
residue of eligible lives is arbitrarily estimated
to be 100000. Four and one-half billions of
dollars of new insurance was distributed among
these 65,000,000 eligible lives. Accordingly, the
per capita purchase of new insurance in 1916 by
every man, woman and child was approximately
So
Likewise for the first time in the history OF
American life insurance, the total insurance in
force hovers closely around the twenty -fve bill
lion mark
For nearly decade the gain in outstanding
insurance has averaged billion dollars year
1t has been estimated that the increase in out
standing insurance in 1916 may possibly reach two
billion dollars, thus bringing the colossal aggre-
gate to the bewilderingly uncomfortable total of
nearly twenty-five billion dollars
every life in the United States p Of approximately
$3.50.
The per capita insurance of the United States
is nearly double that of any other nation in the
world Enslands latest published figure is $162;
Germany's 500; Frances, $3l; Italy's 81.
The total resources of all the national banks
in the United States amounted last week to $l5,-
52G000,000. Assuming that the resources of the
trust companies in the United States aggregated
another $l0O00,0O000O, the total resources of all
national banks and trust companies in the country
is $25,000000000.
Accordingly, it would require the wealth of
all the banking interests of the United States,
excluding the savings banks, to pay the prospec-
tive obligations now outstanding under present
life insurance contracts!
The total assets Of American life insurance
companies at the close of 1916 was approximately
FIVE and one-half billion dollars sufficient to dis
tribute SIS to every individual in the nation.
The total payments to poicyholders in 1916
aggregated over six hundred million dollars-at
the rate of nearly 100000 each working day
in the year-a golden stream Of practical benef-
cence to humanity.
The year was featured by widespread devel-
opment of group insurance, which is no longer
regarded as an experiment or philanthropic
lad, but which has won solid and lasting recog-
milton among employers as one. of the most prac-
tical measures of industrial welfare. "'
Its appeal to the sentimental as we'll as to the
practical nature Of employers is illustrated by the
liberal adoption of the plan as Christmas gift
to employees. From imperfect lists at hand, it
is known that over $l0000,00O of group insurance
was distributed at Christmas, and if complete data
were obtainable, the superstition is reasonable
that Santa Claus in 1916 stuffed probably $751;
100000 of insurance into the stocking of the
American workingman.
Another evidence of the economic trend of
life insurance was the increased sale in 1916 of
income-payment forms of insurance. Life in
surance companies are assuming the character
OF hduciary institutions and have expanded their
function to a broader protection of the interests
of dependents.
Contrary to popular impression, the income
payment plan is not an innovation, for the rec
ords Of the Presbyterian Ministers fund show
that the first policies sued in the United States
were in the nature of an income insurance, pro-
vidng for an annuity to the beneficiary.
In colossal aggregates of accomplishment-in
production, in development and in public service
rendered-American life insurance took its tradi-
tional and accustomed pre-eminence in the great
est, the busiest and the most important year in
the history of the world, 1916.