Annals, Anecdotes and Legends: a Chronicle of Life Assurance

CHAPTER I.. Origin of the Doctrine of Probabilities. Essay of John De

Origin of the Doctrine of Probabilities. Essay of John de Witt. The Plague. First Bills of Mortality. Captain John Graunt--his Opinions, Life, and Estimates. Curious Terms in the old Registers--their Explanation. Life of Sir William Petty. His Career and Character Page 1

CHAP. II.

Practice of Assurance by the Romans. Saxon Approximation to Friendly Societies. Marine Assurance. Danger of Navigation, and its Effect on Life Assurance. Assurance for Palmers and Pilgrims to the Holy Land. Bulmer’s Office of Assurance. Assurance of Navigators, Merchants, and Corporations. Uncertainty of Life. Annuities. Audley the Usurer. His History. Anecdotes concerning him. The Usurer’s Widow 25

CHAP. III.

Judah Manasseh Lopez, the Jew Usurer. His Trick on the Duke of Buckingham. Suspicions concerning him. The Increase of London. Population of London. Proclamations. Halley’s Movement in Life Assurance. His Tables 46

CHAP. IV.

First Trial concerning Life Assurance. The Mercers’--its Establishment and System. The Sun--John Povey, its Projector--his Character. Wagers on the Life of King William. New Assurances. The Amicable--the Mode in which it was established. New Annuity Societies--Anecdotes concerning them--Close of their Career 56

CHAP. V.

Royal Exchange and London Assurance--their Rise and Progress. Bubble Era. Epigrams. Opposition to the New Companies. Accusations against the Attorney-General. List of Assurance Companies. Extraordinary Character of many. Remarkable Career of Le Brun. Directors in Trouble 72

CHAP. VI.

Sketch of De Moivre--his Doctrine of Chances. Kersseboom. De Parcieux. Hodgson. Dodson. First Fraud in Life Assurance--its romantic Character. Thomas Simpson. Calculations of De Buffon 87

CHAP. VII.

Rise and Progress of the Equitable--its Dangers and its Difficulties. Comparative Premiums. Sketch of Mr. Morgan--his Opinions. Singular Attempt to defraud the Equitable--Death of the Offender. Attempt of Government to rob the Offices 108

CHAP. VIII.

Bubble Annuity Companies--their Promises. Effect on the People. Dr. Price--his Life. Sir John St. Aubyn. The Yorkshire Squire--Assurances on his Life--his Suicide. 125

CHAP. IX.

Gambling in Assurances on Walpole. George II. The Jacobite Prisoners. The German Emigrants. Admiral Byng. John Wilkes. Young Mr. Pigot and old Mr. Pigot. Lapland Ladies and Lapland Rein-deer. Insurance on Cities. Gambling on the Sex of D’Eon. Public Meeting. Disappointment of the Citizens. Trial concerning D’Eon. Lord Mansfield’s Decision 140

CHAP. X.

Fraudulent Annuities--Act to prevent them. Salvador the Jew. David Cunningham, the Scotchman--his Career--his Annuity Company--its Success--his double Character--his Fate. Mortuary Registration. John Perrott--his Passion for China--Trick played him. Curious Fraud. Westminster Society. Pelican 157

CHAP. XI.

Legal Decisions. William Pitt, and Godsall and Co. Romance of Life Assurance. The Globe. New Companies. The Alliance--its Promoters. Improvement of the Value of Life consequent on the Improvement in Society--its Description. Trial concerning the Duke of Saxe Gotha. Important Legal Decision 176

CHAP. XII.

Government Annuities--Opinions concerning them--Great Loss to the State. Mr. Moses Wing’s Letter. Mr. Finlaison. New Annuity Act--its Advantages to Jobbers. Endeavours to procure old Lives. Anecdotes concerning them. Philip Courtenay 199

CHAP. XIII.

Fraud in Life Assurance Companies--its Extent--its remarkable and romantic Character. Janus Weathercock. Helen Abercrombie--her Death. Forgery of Wainwright--his Absence from England--his Return, Capture, and Death. Independent and West Middlesex--its Rise, Progress, and Ruin of all concerned 213

CHAP. XIV.

Select Committee of 1841. Instances of Deception. Publication of Accounts. New Companies--Assertions about them--their Importance--Suggestions concerning them 252

CHAP. XV.

Extension of Assurance. Society for Assurance against Purgatory. Commercial Credit Company. Guarantee Society. Medical, Invalid, and General. Agricultural Company. Rent Guarantee. Railway Passengers. Law, Property, and Indisputable Societies. Disputed Policy 282

CHAP. XVI.

The Banker’s Mistress. The elder Napoleon. The deceived Director. The murdered Merchant. The Corn Law League and the Cutler. The Unburied buried. The disappointed Suicide. A Night Adventure 295

CHAP. XVII.

Scotch Life Assurance. Scottish Widows’ Fund--its Directors. North British. The Farmer’s Fate. Edinburgh Life. List of Scotch Companies 317

ANNALS, ANECDOTES, AND LEGENDS OF LIFE ASSURANCE.

CHAPTER I.. Origin of the Doctrine of Probabilities.--Essay of John De

ORIGIN OF THE DOCTRINE OF PROBABILITIES.--ESSAY OF JOHN DE WITT.--THE PLAGUE.--FIRST BILLS OF MORTALITY.--CAPTAIN JOHN GRAUNT--HIS OPINIONS, LIFE, AND ESTIMATES.--CURIOUS TERMS IN THE OLD REGISTERS--THEIR EXPLANATIONS.--LIFE OF SIR WILLIAM PETTY--HIS CAREER AND CHARACTER.

In the early annals of this country, there was no foundation whatever on which to form a theory of the value of life. The wars of succession, intestine strife, and civil discord, killed their thousands. Disease, arising from exposure to the air, from foul dwelling-places, and from an absence of the comforts of advanced civilisation, slew its tens of thousands. They who were spared by the sword and escaped the pestilence, perished too often by the fire of persecution. Death came in forms which were governed by no known laws; and, notwithstanding the insecurity of life, there was no possibility of making a provision for survivors. To this we owe that kind consideration for the widows and orphans of their members, which is observable in many of the city corporate bodies.

Commerce was yet in its infancy, and all the capital which could be collected, was necessary to its development. It was, indeed, on this that the wisdom of the executive was concentrated. Every half century brought rumours of some new land which was to enrich the adventurers who combined to explore it. The most gallant spirits of England sailed, and not always in the stoutest vessels, to explore a new passage, or to trade on the shores of some new country, alike indifferent where they went or how long they remained, provided they could bring home some attractive article of merchandise. Every energy was, therefore, devoted to the extension of our mercantile interests; and although Lombards, goldsmiths, Jews, and usurers, frequently granted annuities, there appears to have been no united attempt to grant assurances on lives.

This universal spirit of commerce produced, however, marine assurance very early, while the gradual progressive movements made in science and philosophy, prepared the way for assurance on life. The rude notions of an uncultivated age were succeeded by broader and more statesmanlike views; the Roman Church, with its narrow notions and its denunciations of progress, ceased to exist; men feared no longer to give a free exposition of their principles; and the Provincial Letters of Pascal prove that a new era had arrived. The doctrine of probabilities,--originated at a gaming-table,--so curious, so interesting, and at the same time so necessary to the present subject, was first popularised by this great genius; but we are indebted to Holland for its earliest application to annuities; as when the States-General resolved to negotiate some life payments, the pensionary, John de Witt, added one more obligation to the many received from this distinguished man, by employing the theory which Pascal suggested, for the requirements of his government. His report and treatise on the terms of life annuities is the first document of the kind, and a most important paper it is. Step by step it explains the grounds on which the proposition of its author was based, and by which he arrived at the conclusion that the value of a life annuity, in proportion to one for a term of twenty-five years, was really “not below, but certainly above, sixteen years’ purchase.” It is probable that from political motives this paper was suppressed; but John de Witt was certainly the first who thought of applying mathematical calculations to political questions, and the first who attempted to fix the rate of annuities according to the probabilities of life. The essay of the pensionary was, however, but little known to the public, and had no sensible influence on the subsequent progress of the science.

Leibnitz, whose hobby was to investigate the theory of chances, first drew attention to this production; but though often alluded to, its very title was not correctly given, and we are indebted to the researches of Mr. Hendriks for its rescue from an unmerited oblivion, and for the able translation of an essay which, had it been published at the time it was written, would have exercised an important influence on its subject. Up to the end of the 17th century, therefore, as there were no laws to calculate the chances of mortality, life annuities were granted according to the caprice of the usurer, or the ignorance of the annuitant; and there is no occasion to remind the reader that the barbaric splendour of the Tudors witnessed customs which, rendering the conditions of life terribly uncertain, had a depressive effect on the science of assurance. The smallpox, a frequent and fearful visitor, was only met by an attempt to stare it out of countenance; for to effect a cure the patient was clothed in scarlet, the bed was covered with scarlet, and the walls were hung with scarlet; so simple and so ignorant were the leeches of the early ages. Dysentery, then known by its Saxon synonyms of the “flux,” “scouring,” and “griping,” daily carried off the unwashed artificers of old London. Nor were dirty habits confined to the mere populace; the banquetting-halls of the palace were rarely or ever cleansed; the accumulations of months were left on the floors, which, to hide the dirt and preserve an appearance of decency, were periodically covered with rushes. In such places disease was ever ready to spring into vigorous life. Every few years, fevers which had been lurking in alleys and ravaging obscure places, devastated the city under various names. At last, that awful sickness which, even at the present day, chills the blood but to think of it, seemed to be naturalised in this country, under the name of the plague; but to it we owe that the initiative step was taken in England, in founding the first principles which govern life assurance, for to it we owe our earliest Bills of Mortality.

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