Annals, Anecdotes and Legends: A Chronicle of Life AssuranceFrancis, John, of the Bank of England
History
Annals, Anecdotes and Legends: A Chronicle of Life Assurance
Francis, John, of the Bank of England
Life insurance
Sir Richard Fanshawe, in an elegant and elaborate
poem,--an evidence that the subject occupied public attention,--asks,
“Who would pursue
The smoky glory of the town,
That may go till his native earth,
And by the shining fire sit down
On his own hearth,
“Free from the griping scrivener’s hands
And the more biting mercer’s books,
Free from the bait of oiled hands
And painted looks?”
It is clear, from these and other facts, and from the circumstance
that it would be very difficult to separate the casual visitors from
the fixed inhabitants of London, that up to the year 1700 there was
little information on which to found an argument. All that we possess
is vague and desultory. Lord Salisbury, in a letter written to Prince
Henry prior to 1612, says, “Be wary of Londoners, for there died here
123 last week.” On the 1st of May, 1619, we learn by another source
that the number of deaths in London was from 200 to 300 weekly. At
the accession of James I., London was said to contain little more
than 150,000 inhabitants; and at the restoration of Charles II.,
120,000 families were said to be within the walls of London. “Before
the Restoration,” said Sir William Petty, “the people of Paris were
more than those of London and Dublin put together; whereas, in
1687, the people of London were more than those of Paris and Rome.”
Evelyn, again, says, in his Diary, in 1684, that he had seen London
almost as large again as it was at that time. Judging from various
independent sources, however, the population of England at the time of
the Revolution may be fairly estimated as ranging from 5,000,000 to
5,500,000.
That the tables of Graunt and Petty had produced small practical
effect, and that little or nothing was known as to the chances of
life, may be gathered from a pamphlet printed in 1680, in which the
whole doctrine of the value of life as then understood and acted on
is affirmed: the utmost value allotted to the best life was 7 years,
at which the life of a “healthful man,” at any age between 20 and 40,
was estimated; while that of an aged or sickly person was from 5 to 6
years, the various limits between these two extremes constituting the
whole range of difference in value.
Such was the limited nature of the statistics of life when the
Astronomer Royal Halley compiled those calculations which make his name
honoured by directors and actuaries. To him we owe the germ of all
subsequent developments of this science, in that general formula for
calculating the value of annuities which is yet regarded with so much
respect.
Public-domain text, read in full here on John Shaqi.
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