The Royal Exchange : $b a note on the occasion of the bicentenary of the Royal Exchange AssuranceMason, A. E. W. (Alfred Edward Woodley)
History
The Royal Exchange : $b a note on the occasion of the bicentenary of the Royal Exchange Assurance
Mason, A. E. W. (Alfred Edward Woodley)
Royal Exchange (London, England) -- History; Royal Exchange Assurance (Firm) -- History
There is already, as you will see, a glimmer of science, but still not
much more than a glimmer. Sir William Petty was led on to some curious
prophecies. For instance, the world would be fully peopled within the
next 2,000 years, and the growth of London must stop of its own accord
before the year 1800 was reached.
The influence of these two men upon thought continued to grow, and in
the year 1693, the most important year in the history of the science of
insurance, Doctor Halley, the Astronomer Royal, published in a pamphlet
a table of probabilities of the duration of human life at every age. He
at last had something to go upon. He had discovered that the town of
Breslau, in Silesia, had regularly issued Bills of Mortality in which
the ages of the dead were recorded. He took the rate of mortality in
that town during five successive years, and for the first time based
the calculation of the duration of life upon a scientific foundation.
CHAPTER VI.
SOME ODDS AND ENDS.
It is curious that, although the idea of insurance is utterly opposed
to that of gambling--the one aiming at rapid gains, the other merely at
protection from loss--still insurance took its origin from the doctrine
of chance as observed at the gaming tables, and led to the discovery
of quite a new form of gambling, which achieved an extraordinary vogue
in the first half of the 18th Century. It was a period of fine clothes
and callous natures; of high costs and lavish expenditure; of turbulent
politics and grave risks. Such a period was the very soil in which
gambling and speculation were sure to flourish. But, even so, the
rapidity and the ingenuity with which the possibilities of gambling,
by means of this new-fangled fashion of insurance, were recognised
are quite remarkable. Indeed, during the greater part of this period,
gambling in policies altogether superseded the legitimate business of
insurance. The life of Sir Robert Walpole, whose person seemed at one
time in peril from popular tumult, at another from party hatred, was
always there to be insured, if less attractive propositions were not
that morning to be discovered.
Public-domain text, read in full here on John Shaqi.
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