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
Such was a portion of Mr. Hodgson’s contribution in 1747 to vital
statistics. This work was followed in 1751 by the “Observations on the
past Growth and present State of the City of London” of Corbyn Morris,
containing tables of burials and christenings from 1601 to 1750. The
tables were important in themselves, and the book is noticeable as
containing a proposal to remodel the Bills of Mortality.
The topic was particularly interesting to mathematical men. In 1753,
Mr. James Dodson pursued the subject, and solved in his “Repository”
an immense variety of questions. Hitherto a table deduced by Simpson
from the London Bills of Mortality, was the only one taken from real
observation. But it need not be said that London was a very limited
theatre on which to found the payment of premiums. The number of
persons who died there in a given time, doubled that of other and more
healthy cities. It was impossible to separate the casual visitors from
the natives, in the record of deaths. It was equally difficult to
divide those who had been born there, from those who were naturalised
by virtue of a long and continued residence. The city, which has ever
been the land of promise to the country, brought adventurers from the
rural districts in a continued stream. The difficulties which prevented
correct information from spreading may be judged by the statement that,
from 1759 to 1768 a third more deaths than births were registered,
the average annual burials being 22,956 to 15,910 of births. In the
previous 10 years, the excess had been 10,500, or near half the
burials. The baptismal registries were also very deficient in that
large class denominated sectarians; Jews, Quakers, Roman Catholics,
and all who refused to recognise the rites of the English Church being
excluded. It required, therefore, care and calculation of no ordinary
character to make any approximation to the truth; and Mr. Dodson
believed he would be nearer it, by adopting the opinions of De Moivre
as the ground work of his tables, rather than by entering on a sea of
uncertain and hypothetical calculations.
In 1754, a further “valuation of annuities on lives,” deduced also from
the London Bills of Mortality was published. By this it appeared that
the work of Mr. Hodgson had not produced much effect in sending the
Breslau Tables out of general use; for, says the author, “I think it
very unreasonable that a poor citizen of London should be made to pay
for an annuity according to the probability of the duration of life at
Breslau, where, as appears from the bills of mortality, one-half of the
people that are born live till they are about 41 years of age, whereas
at London one-half die before they arrive at the age of 13.”
The first known fraud in assurance is one of the most singular in
its annals. The reader must judge for himself of the circumstances
attending it; but there is no doubt that others far more fearful in
their results have since been practised.
Public-domain text, read in full here on John Shaqi.
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