THE INSTITUTE OF ACTUARIES.

ONE of the most important events in the history of Life Assurance, and which is likely to have a marked effect upon its future progress, took place at the Guardian Assurance Office, Lombard-street, upon the 8th of July last, when and where a meeting of Actuaries took place, for the purpose of forming an Institute. It is true that a former committee decided that an institute was unnecessary, and consequently declined the task of establishing it, but we apprehend that those gentlemen will not show a determined opposition, and that when a little time shall have been allowed them to correct their first impressions, and smooth down the feeling of combativeness which even the appearance of opposition gives birth to, the majority will see the importance of the association, and lend it their hearty aid. Great diversities of opinion exist as to some of the calculations upon which the business of Assurance Companies is based, and consequently some offices charge a far greater premium than others for certain risks. There are great discrepancies also as to the calculated values of Reversions, and the tables of various friendly societies, certified by eminent Actuaries, present great contradictions. Upon this point, Mr. Tidd Pratt, in his evidence before a committee of the House of Lords, remarked, "that it would be most advisable if the government would go to the expense of having tables framed by three or four of the first Actuaries in London; because, if we take either the tables of Mr. Finlaison, Mr. Ansell, Mr. Davies, or Mr. Neison, who are the four gentlemen who have certified most of the rates lately certified by me, there is a most material difference between them." And Mr. Tidd Pratt afterwards very wisely remarked-" It has struck me that if those four gentlemen would meet, they would be able, perhaps, to agree, so as to have a table which might be applicable to every society." That strikes us as the great point" if those four gentlemen would meet ;" and the best possible way to ensure so desirable a meeting, is to form an Institute, where not only those gentlemen, but all the Actuaries of the kingdom, may come together, and compare opinions, each giving the others the benefit of his valuable experience. It is exceedingly important that these points in dispute should be settled correctly, for if the office which charges the lesser premium upon a certain risk be right, then the office charging the greater premium is limiting its own business, and discouraging Insurance, by rendering it unnecessarily hazardous; while, if the contrary be the fact, then the office charging inadequately is damaging itself by incurring a certain loss, possibly to an extent affecting its stability.

It is more than probable, too, that these differences are not irreconcileable; that they arise rather from diversity of data than from miscalculations. The conflicting authorities, it may be, and as is most likely, view the same things from different points of sight, like the

heroes of the story of the shield, gold on one side, and silver on the other, who from being placed in different positions, saw different sides of the same object, and taking it for granted that it was the same in all parts, made a quarrel of their diversity of opinion, and fought over it. The errors, wherever they may be, are most likely not arithmetical, but the results of contrariety, or at least dissimilarity of information; and all may have argued rightly, from wrong premises, and consequently arrived at conclusions more or less conflicting or erroneous. Clearly, if intelligent men, ̄so situated, could meet upon some neutral ground, and, in good faith, give their reasons" for the faith that is in them," a satisfactory determination might be arrived at by each finding that he had omitted some element perceived and used by another, and that each yielding something, a just mean result would be found. Were it otherwise; were the difference out of calculation, rather than of data, we should give up the reconciliation of the conflicting calculations as hopeless, for men will yield in matters of fact, while they will hold fast in matters of opinion; but, as we believe it really a matter of imperfect knowledge, making truths apparently oppose each other, we hold the opportunities for interchange of thought, provided by an Institute exceedingly desirable, as likely to solve many difficulties. There are isolated and unprecedented cases, too, sometimes appearing, which must involve some uncertainty even to the most acute and experienced, and as in "a multitude of counsellors there is safety," an Institute, where the point can be discussed by many competent persons, will be of great value to the offices. We do not place so much stress on the proposed examination of candidates for future fellowships, because we think that the managers of Companies are sufficiently acute and keen-sighted to see that they have value for their money, and too cautious to employ as actuary any one not qualified to discharge the duties of the office; and, for the same reason, we are glad to perceive that all existing actuaries are eligible, as Fellows without examination; at the same time, the test is not without its value, as being likely to promote study and investigation in those who aspire to an office of great trust and responsibility. We have only to add, at present, that decided success has attended the foundation of the Institute, and conclude with the following brief account of the proceedings at the meeting referred to.

The object of the meeting was to sanction the plan proposed by the Committee, appointed at a General Meeting on the 10th June last. The following gentlemen and others were present:

Mr. Peter Hardy, F. R. S. (of the Mutual) in the Chair; Messrs. John G. Auld, Colonial; J. Berridge, Freemasons'; Swinton Boult, Liverpool and London; Mark Boyd, North British; W. M. Browne, Westminster and General; Samuel Brown, Equitable; J. Le Cappe

lain, Albion ; W. Cook, Scottish Equitable; J. J. Cleghorn, Guardian ; Jas. Daniel, Commercial and General; J. A. Engelbach, Alliance; G. J. Farrance, City of London; Edwin Jas. Farren, Asylum; John Finlaison, National Debt Office and Royal Naval, Military, East India, and General Assurance Society; Alex. G. Finlaison, National Debt Office, and London and Provincial Law Assurance Society; A. P. Fletcher, Northern; Thadeus Foley, Mariners'; W. Goodchap, North of England; William Sutton Gover, British Empire; J. W. Hampton, Alfred; J. C. Hardy, Legal and Commercial; Benjamin Henderson, Liverpool and London; John A. Higham, Royal Exchange; W. Hillman, Star; C. Ingall, Corporation of London Assurance; J. H. James, Gresham; Charles Jellicoe, Eagle and Protector; David Jones, Universal; Jenkin Jones, National Mercantile; J. Knowles, London and Provincial Law; Edward Frederick Leeks, City of London; James Meikle, Scottish Provident; Thomas Mullinder, Provident Clerks' Association; Thomas Musgrave, Merchants' and Tradesmens'; William Norris, Catholic, Law, and General; David Oughton, General; Thomas A. Pott, Gresham; W. Ratray, Victoria; John Reddish, Architects'; W. T. Robinson, Minerva; E. Ryley, Australasian; A. Scratchley, Western; E. Osborne Smith, Reliance; C. Staniforth, Edinburgh; J. J. Sylvester, F. R. S., Equity and Law; Edward Thompson, Consolidated; George Thompson, Merchants' and Tradesmen's; Robert Tucker, Pelican; Thomas Walker, English Widows' Fund; J. P. Wardrop, Experience; J. Hill Williams, English and Scottish Law; Peter Ewart, Standard; Willmer O. Harris, Scottish Provident; Henry Thomson, North British.

Also, the following gentlemen connected with Scotch Offices, representing not only the companies to which they are respectively attached, but also as a Deputation from others in Edinburgh.

Messrs. Robert Christie, Scottish Equitable; William Thomas Thomson, Standard and Colonial; H. D. Dickie, Caledonian; G. L. Finlay, Edinburgh; John Fraser, Life Association of Scotland; F. G. Smith, Scottish Union; James Watson, Scottish Provident.

Mr. Peter Hardy was called to the chair.

Mr. GLEGHORN, the Hon. Sec. of the Committee, read the Minutes of the previous meeting, and the following report:

Your committee, in accordance with the resolutions passed at the said meeting, viz."That this meeting consider it desirable to establish a Scientific and Practical Association amongst the Actuaries, Secretaries, and Managers of the Life Assurance Societies of Great Britain," and that the Committee then appointed" should devise the best means of carrying such resolutions into effect."

Report-That at their first meeting, held on the 17th ult., after a long discussion, in the course of which the views of each member of the committee were obtained, it was unanimously determined that the preparation

of a draft scheme should be referred to a sub-committee consisting of five members, and such sub-committee was accordingly then appointed.

Your committee received the report of the sub-committee on the 27th of June last, and unanimously agreed to the plan hereunto appended, of which a printed copy has been forwarded to every actuary and secretary whose name appears in the "Post Magazine Almanack" for 1848.

Your committee, considering that the proposed plan is calculated to affect the individual interests of the whole of the profession, invite a full and free discussion of its details; and should a scheme founded thereon be agreed to by a majority of the present meeting, they will be ready to cooperate in carrying the same into effect.

Your committee would suggest that, in the event of some such plan as the one proposed being adopted, a provisional committee of not less than fifteen be forthwith appointed for the enrolment of members, and that on the expiration of the time prescribed for such enrolment a general meeting of the members be convened to elect a president and council.

THO. GALLOWAY, Chairman of the Committee.

After which the chairman submitted the following plan:

1. The Institute of Actuaries of Great Britain.

2. The development and improvement of the mathematical theories upon which the practice of Life Assurance is based, and the collection and arrangement of data connected with the subjects of duration of life, health, and finance.

3. The improvement and diffusion of knowledge, and the establishment of correct principles relating to subjects involving monetary considerations and the doctrine of probability.

4. A nearer approximation to uniformity of practice, official and professional.

5. The settlement of points of professional and official usage, and protection generally to the members of the profession and the public.

6. Elevation of the attainments and statue of the members of the profession.

7. The formation of a library, and the establishment of rooms for reading and conversation.

8. The free interchange of opinion and counsel in matters of difficulty, whether theoretical, official, or professional.

9. The Institute to consist of two classes of members. First class, Fellows; second class, Associates.

10. Every Actuary, Assistant Actuary, or person performing the office of Actuary or Assistant Actuary to any Life Assurance, Annuity, or Reversionary Interest Society in Great Britain or Ireland, in existence and completely registered on or before the 10th day of June, 1848, if he shall have acted in such capacity previous to that date, shall have a claim to be elected a Fellow of the Institute without ballot or previous examination, provided that he shall make such claim and offer himself for enrolment on or before the 1st day of September, 1848, and provided that he shall not be objected to by four-fifths of the Committee of Enrolment to be hereafter appointed.

11. Every Manager, Managing or Resident Director, Secretary, or other chief officer of any Life Assurance Society, in existence and completely registered on or before the 10th day of June, 1848, shall have a claim to be admitted an Associate without ballot, provided he shall make such claim and offer himself for enrolment on or before the 1st day of September,

1848, and provided that he shall not be objected to by four-fifths of the Committee of Enrolment to be hereafter appointed.

12. Any person desirous of becoming an Associate of the Institute, and not included in the above description or limitation, shall be proposed as such by two members, and subsequently elected by ballot under regulations to be hereafter determined on.

13. Any Associate of the Institute who shall hereafter obtain an appointment of Actuary to any Life Assurance Society, and who shall have obtained a certificate of competency from the Institute, to be hereafter determined upon, shall have a claim to be at once elected a Fellow of the Institute without ballot, subject to such regulations as may be hereafter appointed.

14. It shall be lawful for the Fellows of the Institute to proceed at once to ballot for the admission of any candidate into their body who shall, previously to the aforesaid 10th of June, have been the Actuary of any Life Assurance Society, or who shall at the time of ballot be an Associate of the Institute without holding the office of Actuary, but who shall have obtained the certificate of competency, provided in either case such candidate shall be specially recommended by the Council for that purpose.

15. The Institute shall possess the power of expelling any member guilty of improper conduct, and each member shall sign a declaration, on admission to either class, to conform to the rules and by-laws.

16. There shall be annually elected from the Fellows by the members at large, a President and a Council of sixteen, including

Four Vice-Presidents, a Treasurer, a Registrar, and two Honorary Secretaries.

17. The time and manner of the election of the President, Officebearers, and other members of the Council shall be made the subject of future regulations.

18. The Council shall annually elect three Fellows as Examiners, whose duty it shall be to examine candidates for certificates of competency, and to report the result to the Council.

19. The mode of examination shall be subject to such regulations as the Council may hereafter impose, but it shall comprise the four following branches, viz. :— -Mathematical Theory, Vital Statistics, Computation and Construction of Tables,--and Book-keeping and Office routine.

20. Every Fellow of the Institute shall have the privilege of appending to his name the letters F. I. A. (Fellow of the Institute of Actuaries) or such other addition as may hereafter be determined on.

21. Every Associate of the Institute shall have the privilege of appending to his name the letters A. I. A. (Associate of the Institute of Actuaries) or such other addition as may hereafter be determined on.

22. There shall be three Auditors annually appointed to audit the accounts of the Institute, who shall be elected from the general body of Fellows and Associates.

23. There shall be Monthly Meetings during the session, the limits of which session shall be hereafter appointed. The objects of the meetings shall be the reading and discussion of papers, conversation on points of interest, theoretical and practical, ballotting for and election of Fellows and Associates, and the transaction of other general business.

24. All Fellows and Associates shall have the right to attend the meetings. 25. The admission of strangers shall be made the subject of future consideration.

26. Arrangements shall be made for the meetings and proper accommodation of the members.

27. Committees shall be constituted by the Fellows and Associates, viz. : a Mathematical Committee, a Statistical Committee, a Legal, Parliamen tary, and Commercial Committee, and such other Committees as may be deemed necessary.

28. All papers proposed to be read at the monthly meetings shall be sub