"Insurance Best Form Of Social Security”

Press, Volume CI, Issue 29830, 24 May 1962, Page 6

"Insurance Best Form Of Social Security”

The growth of the insurance business in New Zealand must Surely be one of the most remarkable features of commercial activity during this century, said the Prime Minister (Mr Holyoake) at the opening of the annual conference of the Insurance Institute of New Zealand in Christchurch yesterday. “The growth of life assurance has been startling. Since 1900 new buiness written has increased from £5 million to more than £l3O million. During the last decade the value of new policies issued has risen by about £lOO million," said Mr Holyoake. ‘This is an astonishing rate of growth and shows the extent to which life insurance is now an accepted part of the financial planning of the average individual,” he said

“We are inclined to forget the very important social role that life insurance plays in today’s society. It has done a tremendous amount to mitigate the effects of chances and changes and has brought a security and peace of mind that past ages knew little of.

“I am .certain insurance is the best form of social security, resting as it does on the principle of self help, personal responsibility and individual thrift and providence.” he said. A commercial field with such widespread social and economic consequences obviously needed a regulatorybody which watched trends and set standards. The Insurance Institute fulfilled that role with competence and discretion. It had done a great deal in its 21 years to give a high professional standing to those engaged in insurance.

Mr Holyoake commented on the work done by the in,-

stitute in arranging examinations for staff. He said that since 1949 examination entrants had increased from 423 to 929 in 1961. The value of these examinations would stand the insurance companies in good stead in the future. Mr H. M. Collie, who thanked the Prime Minister for opening the conference, said insurance in New Zealand was a very competitive business. Because of this competition. New Zealand stood high in world insurance standards.

Insurance companies had a high degree of responsibility, not only to their shareholders, but also to the country as a whole, said Mr Collie. The companies should take a long term view of their investments. It would be a bad time when the Government wanted the companies to invest in short-term loans