A Comparison of the Values of Policies as Found by means of the Various Tables of Mortality and the Different Methods of Valuation in use among Actuaries (Messenger Prize winning Essay - 1868)

Abstract

Life Assurance is an institution possessing such an important influence in the welfare and well-being of Society that it is most essential the principles upon which it is based and conducted should be such as to ensure its lasting stability and prosperity.After a Life Assurance Office has been once established upon a firm basis, there is no part of its management so important as that relating to the periodical valuation of the liabilities under its policies. It is my object in this essay to inquire into the various methods adopted for that purpose in the present day; and to consider the various results they produce when different tables of mortality and rates of interest are employed in the calculations; and also to ascertain the effects which the employment of different data may have upon the present and future condition of an Office.