THE LIFE INSURANCE COMPANY 3§7 



0*57./ 97 



Expected loss — American Experience Table 



77J7~39& 



Expected loss — Substandard Experie nce 

 0S7.OQQ 



Actual loss in group 



/^7.3 9^ 



Mortality gain from conservation 



Group II. Impaired 



Fig. 2. Analysis of Policyholders who Availed Themselves of the Privilege 

 of Free Annual Medical Examination, 1909-1912. 



Among those found unimpaired, the mortality was only 29 per cent, 

 of the American Experience Table, showing a saving of about 21 points 

 of the mortality expected by the average company among lives exposed 

 for like periods. These risks, although unimpaired, were advised re- 

 garding living-habits, eating, drinking, smoking, etc., arid the saving 

 indicated is properly credited to this system. 



The group reported impaired comprised some individuals who were 

 almost in articulo mortis, hence an expected mortality of 200 per cent, 

 of the American Experience Table might have been regarded as well 

 within the mark. However, the actual mortality in the group was only 

 99 per cent, of that table. That is, where we expected 200 to die, only 

 99 deaths actually occurred. 



The net saving, over and above the cost of operation of our bureau, 

 was at the rate of about $20,000 per year. Now, the annual saving, 

 based upon the hypothesis derived from the British company's experi- 

 ence would, in our company, have been at the rate of about $12,000 per 

 year, showing that the theoretical estimates were conservative, and more 

 than justified by the actual test of experience. The full effect of the 

 educational propaganda could not, of course, be traced in the mortality 

 fluctuations even of a very large company, and I have only attempted to 

 show the results among those who were actually known to be in touch 

 with our health bureau. 



Important health-conservation activities are as yet carried on by only 

 three leading companies out of the 250 now operating in this country. 

 The health bureau established in the Association of Life Insurance 

 Presidents, in 1910, is keeping alive the conservation-idea, but it is a 

 mere adumbration of what could and should be accomplished through 

 the enormous resources available. The pressure of public opinion is 

 needed to set in motion this vast machinery for lifting the burdens of 

 humanity. 



