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Article THE INSTITUTE OF ACTUARIES. Page 1 of 7 →
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software.
The Institute Of Actuaries.
THE INSTITUTE OF ACTUARIES .
ONE of the most important events in the history of Life Assurance , and which is likely to have a marked effect upon its future progress , took place at the Guardian Assurance Office , Lombard-street , upon tbe 8 th of July last , when and where a meeting of Actuaries took place , for the purpose of forming an Institute . It is true that a former committee decided that an institute was unnecessary , and consequently declined
the task of establishing it , but we apprehend that those gentlemen will not show a determined opposition , and that when a little time shall have been allowed them to correct their first impressions , and smooth down the feeling of combativeness which even the appearance of opposition gives birth to , the majority will see the importance of the association , and lend it their hearty aid . Great diversities of opinion exist as to
some of the calculations upon which the business of Assurance Companies is based , and consequently some offices charge a far greater premium than others for certain risks . There * are great discrepancies also as to tbe calculated values of Reversions , and the tables of various friendly societies , certified by eminent Actuaries , present great contradictions . Upon this point , Mr . Tidd Pratt , in his evidence before a
committee of the House of Lords , remarked , " that it would be most advisable if the government would go to the expense of having tables framed by three or four of the first Actuaries in London ; because , if
we take either the tables of Mr . Finlaison , Mr . Ansell , Mr . Davies , or Mr . Neison , who are the four gentlemen who have certified most of the rates lately certified by me , there is a most material difference between them . " And Mr . Tidd Pratt afterwards very wisely remarked— " It has struck me that if those four gentlemen would meet , they would be able , perhaps , to agree , so as to have a table which might be applicable
to every society . " That strikes us as the great point— "if those four gentlemen would meet ; " and the best possible way to ensure so desirable a meeting , is to form an Institute , where not only those gentlemen , but all the Actuaries of the kingdom , may come together , and compare opinions , each giving the others the benefit of his valuable experience . It is exceedingly important that these points in dispute should be
settled correctly , for if the office which charges the lesser premium upon a certain risk be right , then the office charging the greater premium is limiting its own business , and discouraging Insurance , by rendering it unnecessarily hazardous ; while , if the contrary be the fact , then the office charging inadequately is damaging itself by incurring a certain loss , possibly to an extent affecting its stability .
It is more than probable , too , that these differences are not irreconcileable ; that they arise rather from diversity of data than from miscalculations . The conflicting authorities , it may be , and as is most likely , view the same things from different points of sight , like the
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software.
The Institute Of Actuaries.
THE INSTITUTE OF ACTUARIES .
ONE of the most important events in the history of Life Assurance , and which is likely to have a marked effect upon its future progress , took place at the Guardian Assurance Office , Lombard-street , upon tbe 8 th of July last , when and where a meeting of Actuaries took place , for the purpose of forming an Institute . It is true that a former committee decided that an institute was unnecessary , and consequently declined
the task of establishing it , but we apprehend that those gentlemen will not show a determined opposition , and that when a little time shall have been allowed them to correct their first impressions , and smooth down the feeling of combativeness which even the appearance of opposition gives birth to , the majority will see the importance of the association , and lend it their hearty aid . Great diversities of opinion exist as to
some of the calculations upon which the business of Assurance Companies is based , and consequently some offices charge a far greater premium than others for certain risks . There * are great discrepancies also as to tbe calculated values of Reversions , and the tables of various friendly societies , certified by eminent Actuaries , present great contradictions . Upon this point , Mr . Tidd Pratt , in his evidence before a
committee of the House of Lords , remarked , " that it would be most advisable if the government would go to the expense of having tables framed by three or four of the first Actuaries in London ; because , if
we take either the tables of Mr . Finlaison , Mr . Ansell , Mr . Davies , or Mr . Neison , who are the four gentlemen who have certified most of the rates lately certified by me , there is a most material difference between them . " And Mr . Tidd Pratt afterwards very wisely remarked— " It has struck me that if those four gentlemen would meet , they would be able , perhaps , to agree , so as to have a table which might be applicable
to every society . " That strikes us as the great point— "if those four gentlemen would meet ; " and the best possible way to ensure so desirable a meeting , is to form an Institute , where not only those gentlemen , but all the Actuaries of the kingdom , may come together , and compare opinions , each giving the others the benefit of his valuable experience . It is exceedingly important that these points in dispute should be
settled correctly , for if the office which charges the lesser premium upon a certain risk be right , then the office charging the greater premium is limiting its own business , and discouraging Insurance , by rendering it unnecessarily hazardous ; while , if the contrary be the fact , then the office charging inadequately is damaging itself by incurring a certain loss , possibly to an extent affecting its stability .
It is more than probable , too , that these differences are not irreconcileable ; that they arise rather from diversity of data than from miscalculations . The conflicting authorities , it may be , and as is most likely , view the same things from different points of sight , like the