The Early Histories of the Annuity

The present paper, dealing with the fascinating and compelling story of the annuity, is offered in line with the purpose of the Council and of the Educational Committees of the Society to have papers presented on the fundamental aspects of insurance. Students who follow the usual references in Section 8 of our syllabus are likely to consider chiefly the superficial mechanics of annuity computation, and to overlook some very important historic, legal, economic and underwriting aspects of this type of insurance. It will be possible to present the landmarks in the history of the annuity, bringing the record to that point in the nineteenth century when the transaction of annuity business passed almost entirely into the hands of insurance corporations. The real history of the annuity remains, however, to be written. Let us consider at the outset certain organic definitions.