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
The most tempting names which could be chosen allured the world.
Prospectuses of a vaunting character were passed from hand to hand. The
promises of Mr. Montague Tidd, of the Anglo-Bengalee, were nothing to
these. Widows were to be provided with all they required, for a nominal
amount. Children were to be endowed with fortunes, for comparatively
nothing. The London Annuity and Laudable Society out-heroded Herod.
The coffee-houses were haunted by agents to spread the praises of a
royal Lancaster. Touters--this modern title is expressive--who brought
a certain number of subscribers, were allowed the privileges of most
of the societies for nothing. A commission of the first year’s premium
was no uncommon reward to those who attracted a new victim, and very
heartless and infamous was the result. In one case a son brought the
savings of a parent to a company which was sure to break. Friends
insidiously recommended societies, under the guise of kindness, to
their intimate acquaintance, and so long as they pocketed the heavy
reward, were regardless of consequences. These associations spread
from London to the Continent. Amsterdam, Bremen, Denmark, and Hanover
were filled with wretched bubbles of this character, which carried
misery to hundreds of homes.
The people were utterly guiltless of all knowledge on the subject.
The information which had been brought forward from time to time, had
produced its effect on the scientific portion of the world, but those
who were practically interested, knew nothing. The young and unthinking
were so ignorant or so indifferent to results, that they were content
to pay only a fourth or fifth of the fair amount of premiums for their
deferred annuities. The elder and more cunning--and by these the
societies were principally supported--thought that the bubbles would
last their time, and with the selfishness of age, were content. But in
the midst of their contentment a shell exploded in their citadel. Dr.
Price, an unsuccessful Unitarian preacher, and the contributor of many
rare papers to the “Philosophical Transactions,” published the work
which has brought his name down to the nineteenth century as a deep
thinker. There had been hitherto little or no advance in the science
which regulated assurance or annuities on lives. The reputation of
the doctor drew attention to his work. It was there found that, not
content with the tables of mortality from Breslau, he had obtained
correct tables from Northampton, Norwich, Chester, and other places.
He entered minutely and by name into the prospects of the various
societies, he proved it to be utterly impossible for them to perform
their contracts, and averred that, if some fresh arrangements were
not entered into, to strengthen the existing companies, they must
inevitably fail, for they were founded on principles which could not
last; which must deceive the public; and which could only pay the
contrivers.
Public-domain text, read in full here on John Shaqi.
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