LOWER INSURANCE RATES.

Auckland Star, Volume LIV, Issue 182, 1 August 1923, Page 4

LOWER INSURANCE RATES.

Though the announcements appear at the some moment, the public is bound to see a connection between the bonus rebate of 15 per cent on premiunu granted by tbe : State Fire Office and the same percentage reduction on premiums made by the insurance companies. A rebate by the State Fire Office hae been talked of for aome time. "During 1922," says the late general manager in this year's report, "an amendment to the I State Fire Insurance Act whs passed authorising the Board of the Office to grant a rebate to the insured. The previous provisions for the payment of a bonus were not workable, and the amended legislation should enable & J satisfactory settlement of this very im- , portant question to be made at an early date." The general manager also mentions that the year under review was marked by greatly increased competition, which was due "partly to a reduction in the amount of new business available and partly to the entry of several new offices into the competitive field." Possibly this increase in competition had something to do with the State Departi ment deciding to give back as much as ! 15 per cent at this juncture. It may also , 'be pointed out that these concessions by the Department and the companies have occurred after a year in which ' the loss ratio showed a substantial mii crease. In the State Fire Office the I ratio of loss to premium income rose 1 from 27.05 per cent in 1921 to 32.32 in 1922. However, the net profit of the Department rose from £39,325 to I £46,403. The all-round concession of 15 per cent will mean something substantial to everybody, from the humble householder to the merchant. The State Fire Office gives back about £21,000, on last year's figures. The latest figures for all insurance business are for 1921. These show that the gross premiums charged on New Zealand business amounted to £1,943,000, so that on that basis premium payers will benefit by these rebate's to the amount of about £290,000. it will bo very welcome.