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

Published online by Cambridge University Press:  03 October 2014

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Synopsis

The 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.

Type
Research Article
Copyright
Copyright © Institute and Faculty of Actuaries 1956

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References

page 209 note * It is not, of course, suggested that this basis would be adopted in practice. It is introduced here merely as one method of measuring the change in the actuarial position of the office resulting from the use of the lower scale of without-profit premiums.

page 231 note * See Transactions of the Fourteenth International Congress of Actuaries, 2, page 112.

page 231 note † See J.I.A. 79, page 14.