On the Transaction of Life Assurance and Annuity Business Without Participation in Profits

Abstract

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.