Recent developments affecting the bases of calculation of ordinary life assurance and annuity premiums include the publication of the A1949-52 and a(55) mortality tables, the passing of the Finance Act 1956 and the rise in interest yields on life assurance funds to unprecedented heights, resulting in high bonus rates.

Part I of the paper deals with the general effect of these and other developments on the three main variables of mortality, interest and expenses and in the charge to be made for the right to participate in surplus.

Part II deals with the detailed effect of these developments on the actual premium calculation formulae used for various standard types of policy and for types of policy that have come into existence or increased substantially in importance in recent years, including self-employed annuities, variations on the temporary assurance theme and policies effected for estate duty purposes such as pure endowments with return and whole life assurances for large amounts at high ages.