FIRE LOSSES

Ashburton Guardian, Volume XLIV, Issue 9875, 24 July 1923, Page 2

FIRE LOSSES

FOLLOW THE SLUMP.

OFFICIALS SUSPICIOUS,

(Per Press Association.) WELLINGTON, July 21. An increase of £7965 in the fire losses paid by the State Fire Insurance Department last year prompt the General Manager to make very pertinent comment on the curious relation between low loss ratio when values of property are high, and the increase when values drop. “Losses showed an increase of £7965 over the previous year,” he remarks, “and the increase was anticipated, as during the period when high values operated, the loss ratio fell to a. remarkable degree. On the other hand the fall in values which has taken place since the boom has been accompanied by a great increase in the number of outbreaks of fires and a substantial rise in loss ratios of all offices doing business in the Dominion. The State Fire ratio of losses to business have been: Loss ratio per cent, j 1920 17-01 1921 2/.90 *1922 32.32 “It is quite apparent that a large proportion of the outbreaks are preventiblo in character,” adds the General Manager. . “The question of investigation or 1 loss experience of fire offices, remaiks , the report, “is under consideration by 1 the Government Statistician, who has ! power to ask for tlio necessary ; It can be'said that the re-grading of » the rates of premium is undoubtedly > necessary, both from the point of s view of the cost to the public, and the > equities as between different classes of * risk.” The Department’s profits for the > year were £46,403 compared with - £39,325 for the previous year, and b the reserve fund stands at £296,566. 5 The report briefly indicates that recent legislation will enable settlement to be made at an early date in eonnee--5 tion with the rebates to insurers which j were provided for in the Act under 3 which the Department was establish- * ed. It is mentioned that the practice s of granting unwarranted rates to at- - tract business, by agency appointments ■ which are not legitimate has reached 1 serious proportions, to the great disl advantage of offices which sanction - only legitimate agencies, and _ that i this question requires consideration.