MTHEL131 Lecture Notes - Lecture 1: Confederation Life, Manulife, Life Insurance
19 Oct 2016
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1757 london, england petition for first life insurance company petition rejected. 2016 top 3 financial concerns: dying too soon, living too long, disabled or seriously ill. 1583 richard martin [first life insurance contract] Calculated cost of death of william gibbons. If william lives: richard pays friends 8% of 383 [term of 12 months] Why life insurance took so long to become commercially available: lack of knowledge of death rates for commercial purposes. Must be able to price products properly. Death rates fluctuated too much: plagues [bubonic plague/black death plague] 1750s stabilization of death rates the confusion on the general public with regard to gambling and legitimate life insurance. 1762 old equitable the legislation was passed. The old equitable was formed [first life insurance company] [whole life policies: in force for the whole of life , actuaries would calculate and design premiums at level annual premiums , premiums would vary based on age of entry.
