In paragraph 27 of the Parmoor Report (Cmd. 614/1920) it is stated that an investigation into the methods by which different Industrial Assurance Companies ascertained their actuarial liabilities revealed the fact that among nineteen such Institutions no fewer than eighteen different methods were found to be in use. That the methods in use were practically as numerous as the Offices adopting them was a fact worthy of being recorded, and one which would appear to require some explanation, but I submit that, surprising as such a revelation may be, it would have been even more remarkable had the investigation disclosed that all these Offices used a similar Valuation basis. The views of the Parmoor Committee on this very important matter are summed up in the following extract:

‘The business of all the (Industrial) Companies is practically identical, their Tables of Rates are strikingly similar to one another and the adoption by all of an identical method of valuing the liabilities might reasonably be expected.’

The following is a short account of the various records used and of the entries necessitated by the purchase of, and subsequent dealing with, Stock Exchange investments. In other words, it endeavours to trace so much of their history as is written in the books of that department of an insurance company which deals with Stock Exchange securities, which may be called for convenience the Investment Department.

Such a department would not keep the final books of account which provide the items for the Balance Sheet and other returns, all such information being obtained from the accountants' section. It would, however, decide upon the method of treatment of the many problems which arise in connection with security transactions.

The following notes are the result of an effort to consider the subject of extra risk from the point of view of the student dealing with the practical side of the case by showing how office practice endeavours to give effect to the actual conditions prevailing in particular cases.

A good many of the risks to be assessed require the assistance of the Medical Officer, especially where the degree and incidence of the extra mortality is concerned. I am of opinion, however, that the actual monetary assessment should be finally decided by the Actuary.

In this connection, there are one or two points which call for criticism and remarks.