Bonuses in Model Office Valuations and their relations to Reserves

Extract

Following on the reading of Mr. King's paper “On the Comparative Reserves of Life Assurance Companies” (J.I.A., xxxvii, 453), there appeared in the Insurance Record an interesting correspondence, in which certain developments of that paper were asked for. As these promised to lead to results of considerable interest and to throw much light on the working of bonus systems, I communicated with Mr. King, and it was with his concurrence that the present investigation was undertaken. I desire now to express my thanks to him for his kindness in placing at my disposal his manuscript tables, which greatly shortened the work of certain parts of the investigation.