Observations on the proper method of keeping the Accounts, and determining from year to year the State of the Society for Equitable Assurances on Lives & Survivorships, 1774 [transcript]

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This is one of the key documents in the history of actuarial science. Richard Price introduces a number of ideas including that of the valuation of life policies; he indicates how the calculations should be made and how to use the results to ascertain the financial position of the society. The report, which is addressed to the Society’s directors, develops methods for carrying out an investigation into the state of the Society from time to time. At this period the Society had no idea of whether it was making a profit or loss. M E Ogborn, Equitable Assurances (1962), pages 103-104, concludes: “Richard Price’s observations were the first to show how the business of a life office should be arranged and valued.” The report does not appear to be in Price’s normal handwriting that he used for letters, so it may be a contemporary copy prepared for one of the directors. Ogborn says that the report was considered by the directors when they met at the President’s home on January 27, 1775.