BREAKOFF MOVE.

Auckland Star, Volume LXVI, Issue 229, 27 September 1935, Page 5

BREAKOFF MOVE.

INSURANCE COMPANY.

UNDERWRITING BUSINESS. DEVELOPMENTS EXPECTED. Interesting developments pending in general insurance business in New Zealand are foreshadowed by the announcement that the General Accident, Fire and Life Assurance Company, one of the big British underwriting companies that has been operating in the Dominion for a number of years, has notified the underwriting associations of its intention to retire from membership.

This will bo the first important breakaway from the associations that have controlled insurance conditions and premium rates in New Zealand, states the "Dominion." Numerous non-tariff offices have operated, but their insurances have represented only a small proportion of the aggregate volume of business. The General Corporation, however, is established in every part of the world, and its yearly premium income is over £8,000,000. It is contended that the_ withdrawal does not mean any intensive competition by rate cutting; but amendments of existing practice are conteriiplated, 60 that many classes of risks will Be rated on their merits, and premiums generally will be revised to conform with actual experience of claims payments. The action that will be taken by the tariff offices is awaited with interest in insurance circles. Some members ot the committee think that the retirement of the General Office will not have a serious influence on underwriting control, but an interesting situation may develop. It is said to be generally recognised by leading insurance men that the business had reached the state when it requires a thorough overhaul. It is considered, for instance, that there are numerous anomalies that should do adjusted.