Report of the Royal Commission on Insurance Volume 2; Minutes of Evidence [March 5-Nov. 24, 1906] (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1907 Excerpt: ...more than any other class, and after a company gets on its feet and becomes established it is not, I (Imperial Life, Mr. Bradshaw, Ex'd.) do not think, a very important problem. Q.--We have seen that the profits to policyholders have been very much interfered with in some companies by the getting of new business? A.--Yes; have you looked into the advantages that have accrued to the company by that new business? Q.--What about the advantages that have not accrued to the policies that have become claims? A.--They get their share during their life time. Q.--They do not get their share, those that live to that period, and do not live to reap the benefit of the larger and expanded business? A.--You cannot take one policyholder or one group of policyholders in a life company, you must take the whole. Q.--Does nojt rapid extension of business over a certain period of time work rather hardly on the policyholders of that day? A.--Yes, rapid extension, it does, but I have no sympathy with the rapid extension of business. Q.--Using this net premium basis, and a fairly rapid extension of business interferes very largely with those profits? A.--It would, if it is a very rapid extension. Q.--Or even a moderately rapid extension, if the extension is in certain countries where the expense is high? A.--If there is a moderate accession of new business then it should not disturb the profits of policyholders. Q.--That might apply where the accession of new business is in the home country of the company, but can that apply where a company is extending its business into other fields? A.--That would mean there is a very large accretion of new business. Q.--It might or might not at first, the company must become established? A.--Yes. Q.--As these Canadian companies are endeavoring...