CO129-346 - Governor Sir Lugard - 1908 [1-3] — Page 210

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

207

to stor eris ?nuð er of axustas Ji Tedtre

zvinnunoo tot stoves climaaneconnu at woh biel Jesīstai

no eldoniaddo al desnoční Maid redw tasi oris nt badaiidajan

ath no damndal to odar date a matico gcagnon A about Kionj

4 BC Beyneet ents! Hove verge of unimpen com socb about

ertange pinumoo » Iagnos od bra,eter revol a primise vasqboo

mn you at evelled I dobila ? you to danmetal to edm egersva ne

-gagebedryf na vigas or ni Ma tu suley or

Cue queria Isvevnu

mnist peinsqido uran di Jfraen blwow bra Jued atove# VINY

monch set od vino vom alvow yenen mi dol w tagyfoeul beusfoob

act of neerzod emoabreen oraloob of roletuog a mi ed jud #1

avi qucoo treatme qd bolleilistes dead asr 21 .exobfəri yolfoq to scam enenovs adt neowtna Pel of 25 to mistor a Jant

ziqus al molvaniay at at boerous tacit hun bertso tesnejni

Bovicbet to nona Cuch an ebivony of vino Jon Junioittwe

(isnoleroval hairognos boon s abivong of oala dun bonbupor

to test erit exem of cant destinar el ti oa palec bir .auto2

to enter coat efft veq Da villids edi .0.1 wasemoo e to youevloa

-5% að any tren!

sub emooed yode ca aturitnoo at Ja Grom C

oturomoo & fitu teritumot (urt ek swistloq ens ceq of stiełup-

Ife of what ur Jud visadosum gino ton si eunod yzanolenevAT

.bertsonOO

In America where a standard of solvency was

first adopted in 1866 the table used was English Life Table No.3 Interest at 5%. Later it was changed to the American Experience Table at 44, and I much doubt if ever the average rate of interest earned there could compare with that of a well managed

company out here.

From this it should be abundantly clear

that under present circumstances the test proposed to be applied

by the ordinance to companies established in the Far East is

most unsatisfactory and should be amended with the least

possible delay.

Of course it must be borne in mind that the

rates of interest prevailing out here now may in the future fall

and a severer test be necessary. For this reason it appears to

Bei me to most desirable that no standard test of solvency should

be stated in the ordinance but that it should be left to the

discretion of the Hongkong authorities and their advisers to

decide from time to time according to varying circumstances

what is the, requisite test of solvency.

*

These are I think the principle failings

of the ordinance as it now stands. But I think most British

Actuaries will agree with me in thinking that the ordinance is

a mistake,

sit eoubar of

to nder 998TOTE est enuiw misto deerD KI MJET Kŋetava sila ta tahan al esinuggol etil vd bantse testetni won vonefnet a at event favors ha el mottaufwy to orreas of Torowol maidi airozeṇmab ♬ of bluow JI „Płu to $s of

Jusvioant een teed noitaufgr A a beeang daft vneqroo e døNJ

Jeezedni to otan egeters sit Jant woris of bloo +i ɛasinu

*** wofed eldarubianos nelist bad desq emijemos tot berreo

nottwiler a ed biwow dant doeskog at viloobƒe-oor

Ni neqriod pre vd beonce teetotni to eben opcreva Lertoa eift to

*foxking cow eden atris Juris nwoda sd card ai himor? .Insq ode

tot aber un biros enotalvorg (@wout eft nl beeliser ad of

19% 20V16897 orid malesetont has stør notisular ent aninuber

.otjut ent

The object of the ordinance is stated at

the end, to be the securing of the "Solvency and permanency of

companies carrying on the business of Life Assurance in the

Colony," and with that object not only every Actuary but every

right minded person must be in sympathy, but I fear that in

practice the Ordinance as it now stands will defeat its own

ends; by restricting rather than fostering the principles of

Life Assurance. The idea of the authorities in endeavouring to

protect the insuring public in Hongkong and China from what are

known in America as "Wild Cat" companies is to be highly com-

-mended and will certainly have the support of every thinking

person but in my opinion, and r fancy most experts will be with

me,

Page 210Page 211

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