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
From this period he seemed to decline in health, expressed a loathing
for the place where he had once been so happy; change of air was
prescribed, and he left the men whom he had deceived, chuckling at the
success of his infamous scheme.
It need not be repeated, that the poverty-stricken gentleman of the
suburbs, the gambling captain of Queen Square, and the merchant of
Liverpool, were identical. That so successful a series of frauds was
practised appears wonderful at the present day; but that the woman
either possessed that power of simulating death, of which we read
occasional cases in the remarkable records of various times, or that
the physicians were deceived or bribed, is certain. There is no other
way of accounting for the success of a scheme which dipped so largely
into the pockets of the underwriters.
The next movement in the scientific annals of life assurance was made
by Thomas Simpson, a natural and self-taught mathematician, whose
life prior to throwing himself on the world of London for support had
been somewhat of a vagrant one. He had cast rustic nativities, told
fortunes, advanced courtships, and occasionally varied his vagabondism
by undertaking to raise the devil, an attempt in which he was so
successful, that he sent his pupil mad, and was obliged himself to
leave the village. In 1740, he produced a volume “On the Nature and
the Laws of Chance;” in 1742, this was followed by his “Doctrine of
Annuities and Reversions,” deduced from general and evident principles,
with tables showing the value of joint and single lives. In 1752, he
made an additional contribution to the statistics of annuities, as
he published in his “Select Exercises” a supplement, wherein he gave
new tables of the values of annuities on two joint lives, and on the
survivor of two lives, more copious than hitherto. He first attempted
to compute the value of joint lives; but as these were still taken from
the London Bills of Mortality, they were by no means fit for general
acceptance. He treated his subject, however, more broadly and clearly
than it had been previously treated, giving some of the best tables
of the values of life annuities, which were published for many years.
Though the manner in which they might be computed had been shown by
Dr. Halley, it is to the self-taught Simpson we are indebted for their
practical application.
In 1760, M. Buffon published a further contribution to the statistics
of assurance, in a table of the probabilities of life, estimated
from the mortality bills of three parishes in Paris, and two country
parishes in its neighbourhood.
The following are some of his calculations:--“By this table,” says the
author, “we may bet 1 to 1 that a new-born infant will live 8 years;
that a child of one year old will live 33 years more, that a child of
full two years old will live 33 years and 5 months more, that a man of
thirty will live 28 years more; that a man of forty will live 22 years
longer, and so through the other ages.”
Public-domain text, read in full here on John Shaqi.
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