There will, I venture to think, be no difference of opinion among the members of this Institute as to the advisability of an early and adequate discussion of the many points of difficulty presented by the new Assurance Companies Act. Neither will there be any doubt as to this Institute being the proper place for such a discussion, consisting as it does of an unrivalled body of experts on the subject of life assurance. In these circumstances I have ventured to undertake the task of bringing the matter before the Institute, confident in the fact that however inadequate my treatment of the subject may be, those before whom the paper is to be read are fully competent to make good any shortcomings on my part, and will be both able and willing to correct any errors into which I may have fallen.

In view of the long and honourable association of British life assurance institutions with life assurance in Canada, an association dating back prior to the formation of Canada's oldest company, and of the deep interest taken and aid rendered during the preparation of the Dominion Insurance Act, 1910, by the Canadian and Home officers of those British life institutions actively engaged in business in Canada, as well as by leadingindependent British actuaries, it would appear but appropriate that some reference should be made in the proceedings of the Institute relative to the new Act. Furthermore, in consequence of the increased interest taken in the affairs of Canada generally, and of the great development everywhere in evidence there, may it not be that a closer acquaintance with the principles underlying the new Canadian legislation may encourage those British life offices which though nominally having agencies in Canada are inactive in so far as new business is concerned, and other offices which have not yet ventured across the ocean, to seek aggressively for new business throughout the Dominion.

IN the preparation of this paper I met at the outset with certain difficulties.

The practice of Employers’ Liability Insurance is unfamiliar to many members of this Institute, the subject has not previously been dealt with at one of our sessional meetings, and the pages of the Journal contain very little matter bearing thereon, I fear, therefore, that if the subject is confined within the strict limits suggested by the title, the prospect of a full discussion will be jeopardized. As probably the opportunity of a discussion is the best justification for a paper on the Valuation of Employers’ Liability Contracts at the present time, I hope that the inclusion of a certain amount of introductory matter, with a view to facilitating the study of the paper, will be excused.

During the past twenty years or so, State Insurance in one form or other has been steadily extending, and now appears likely to be established on a broad basis in Great Britain. The problems presented by it are very complex and comparatively little understood either as regards nature or consequences, while socio-political pressure compels the use of approximations where complete solutions are unattainable. In particular the statistical bases and actuarial treatment of these great schemes, which affect the well-being of millions, afford great scope for the utilization of the training provided by the Institute of Actuaries and other scientific bodies of like aims.

1. Mr. James John M’Lauchlan has done excellent service, in his Presidential Address to the Faculty of Actuaries on the 30th of November 1908, by drawing attention to the natural growth of a normal Pension Fund, and the necessity of accumulating large invested funds during the first 40 or 50 years of its existence, in order to provide for the heavy liabilities which will then be maturing for payment. He has done this by a few simple and easily understood illustrations involving a very considerable amount of accurate calculations which do not appear in the work.