What has led the proprietors to associate, to enter into this mutual assurance, is the love of fixity, of security. They prefer known risks to risks which are unknown, a multitude of small risks to one great one.
Their design, however, has not yet been completely attained, and there is still much uncertainty in their position. Each of them may say, “If accidents are multiplied, my quota will become insupportable. In any case, I should like to know beforehand, and to have insured in the same way my furniture, my merchandise, etc.” [p355]
It would seem that such inconveniences belong to the nature of things, and that it is impossible for men to get rid of them. After each step of progress we are tempted to think that all has been accomplished. How, indeed, can we elude this uncertainty, which depends upon accidents still unknown to us?
But mutual assurance has developed in the social state an experimental knowledge, namely, the average annual proportion between the values lost by accident and the values assured.
Having made all the necessary calculations, a company or an individual says to the proprietors, “In entering into a mutual assurance, you have wished to purchase freedom from anxiety, and the indeterminate quota which you reserve annually to cover accidents is the price which you pay for this immunity. But if you do not know what this price is beforehand, your tranquillity is never perfect. I now propose to you, therefore, another expedient. In consideration of a fixed annual premium which you shall pay me, I take upon myself all your chances of accidents. I will insure you all, and here is the capital which will guarantee the fulfilment of my engagement.”
The proprietors accept the proposal, even although this fixed premium should amount to somewhat more than the sum which their mutual assurance cost them; for their object is not so much to save a few shillings as to obtain perfect repose and freedom from anxiety.
At this point the Socialists pretend that the principle of association is destroyed. For my part, I think it is improved, and on the road to other improvements to which I can see no limits.
But, say the Socialists, the assured have no longer any mutual tie. They no longer see each other and come to a common understanding. Intermediary parasites have come among them, and the proof that the proprietors are now paying more than is required to cover accidents is to be found in the fact, that the insurers obtain large profits.
It is not difficult to answer this objection.
First of all, association exists, but under another form. The premium contributed by the assured is still the fund which is to make good the losses. The assured have found the means of remaining in the association without taking part in its business. This is evidently an advantage to each of them, seeing that the design they have in view is nevertheless attained; and the possibility of remaining in the association whilst they have their [p356] independence of movement and free use of their faculties restored to them, is just the characteristic of social progress.