Mathematicians and the early English life insurance industry

Abstract

Motivated by a manuscript find in the Macclesfield Collection held by Cambridge University Library, the role of mathematicians in the emerging life insurance industry in eighteenth-century England is examined. Two early life insurance societies are examined here in detail. In one, a prominent mathematician's arguments were ignored thus confirming the generally accepted view among historians of insurance that the role of mathematicians at this time was minor or non-existent. For the other case, the promoter of two insurance schemes used his mathematical knowledge to design the operation of his insurance plans thus showing that mathematical activity was at least not non-existent. The manuscript find still leaves the question of what the motivation and impact was of the major writers on life annuities during the first half of the eighteenth century. This is addressed by considering the major economic background of early eighteenth-century England—land and property.