MTHEL131 Lecture Notes - Lecture 1: Confederation Life, Prediction Company, The Great-West Life Assurance Company
14 Oct 2018
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A petition was issued to start the first life insurance company. Why insurance? (primary reasons): to protect the loved ones, the financial dependents, if the breadwinner passed away unexpectedly, the ones left behind can still survive, large amount of cash at the time they need the most. Today in canada, this original philosophy is still the fundamental of the life insurance industry. Note: bank cannot sell life insurance or life annuity, thus life insurance companies are big players in their industry. Since the federal government does not want to get the industry monopolized by the banks. Three largest insurance company: sunlife, manulife, great west life. Richard martin: successful entrepreneur, municipal politician, and a self-made man. William gibbons: general manager for martin, his right hand man. Martin calculated the financial loss if gibbons died: Since sales goes down and costs goes up, therefore martin will lose a lot of profit.
