The net rate of interest yielded by the investment of insurance funds has seldom departed far from 4%. With such a long record of a fairly constant rate of interest we may not unreasonably ask ourselves whether 4% is in any sense a “natural” rate of interest for long-term investments and, if so, what are the factors which control the rate within measurable distance of this figure. Professor Cassel has definitely put the question “why is the rate of interest -04 instead of -004 or -0004?” and he has answered it by indicating that the rate is controlled by the duration of human life.

Over fifty-four million, pounds collected in premiums in 1930; the magnitude of this figure alone would afford sufficient excuse for reverting to the report of which the full title appears above and which was reviewed in an earlier issue of this Journal.* The subject has, however, an added interest to the Institute since Industrial Assurance is the daily concern of many of our members and among the Committee, whose report (apart from one minor reservation to which reference will be made later) was unanimous, were included a Past-President of the Institute and the then President of the Faculty. Moreover, the Committee included no one directly interested in the administration of Industrial Assurance and its findings must therefore be regarded as impartial.

From the table on page 168, it is possible to derive the following approximate table, where n equals the unexpired term in years and in equals the gross yield to redemption:

The law relating to death duties has changed considerably since 1906 when my predecessor, the late Mr J. C. Denmead, presented a paper to the Faculty of Actuaries entitled “Some Notes on the Death Duties from an Actuarial Point of View”. I have been asked, in view of the changes and lapse of time, to give some more modern notes on the death duties, treating the matter simply and briefly. Simplicity and brevity preclude a complete account of the death duties and these notes must be taken as dealing only in a broad way with such matters as seem of special interest to the actuary. The statements made and the opinions expressed have no official authority.

Many papers have been submitted to the Institute upon the subject of the mortality experienced by assured lives in various parts of the world, and descriptions have also been given of the way in which life assurance business is transacted in other countries. There are, however, problems which are peculiar to the transaction of life assurance in a country other than that in which the office was established, and which have not as yet been discussed.