Equitable Life Assurance Society

The London mutual founded in 1762 that pioneered scientific life insurance pricing and later suffered one of the most famous collapses in British finance.

Overview

Building on the ideas of mathematician James Dodson, the Society for Equitable Assurances on Lives and Survivorships charged level premiums based on age and mortality tables rather than flat fees, establishing the model of modern life insurance, and its chief official was styled the actuary, giving the profession its name. Over two centuries it became a leading British mutual. In the late 20th century it sold policies with guaranteed annuity rates without reserving adequately for them, and when interest rates fell the guarantees became extremely costly. After the House of Lords ruled against its attempt to cut those benefits in 2000, Equitable closed to new business, and its remaining policies were transferred to Utmost Life and Pensions in 2019.