Trends In Insurance Business Described

Press, Volume CII, Issue 30287, 13 November 1963, Page 14

Trends In Insurance Business Described

During the last few years there had been a tendency for people to take less endowment insurance and more whole life insurance, said Mir G. E. Villars, district manager in Christchurch for the Government Life Insurance office. He will retire on Thursday after 42 years’ service with the office. The modem tendency was to take out whole life insurance but when a man lived, say to 60 and his family was off his hands, he changed his whole life policy to one maturing at say 65, said Mr Villars. Mr Villars joined the Government Life Insurance Office in Wellington in 1921 as a cadet. He has been with the office ever since except for war service and 18 months with the National Service Department. He returned to the Government Life Insurance Office in 1946 and in 19*7 he went to Tauranga as district manager He came to Christchurch as district manager in 1960. When Mr Villars was a cadet the office was writing £l5 million new business a year for New Zealand. This year the new business would be about £35 million. Individual policies were now much larger than they used to be. ‘‘The cadet in my day took out a policy for £2OO. Now he takes out a £2OOO policy,” Mr Villars said. ‘‘Another change has been in medical examinations. We used to have a medical examination for anyone taking a policy for £lOO up-

wards. Now we issue policies of up to £5OOO before requiring a medical examination. ‘‘One of the biggest, changes in insurance business is the superannuation schemes. In my young days they were practically non-existent. Now they are a big factor in insurance. Social security had made no impact on insurance, he said. “People are living longer. The mortality rate has been improving all the time and this has enabled us to lower premiums and give higher bonuses. Premiums are actually lower now, generally speaking, than when I joined the office.” said Mr Villars. Mr Villars, with bis wife two daughters, will leave for Britain shortly for a caravan tour which may last two years. “We’ve planned this tour for years. It is going to be especially valuable to me for it will ease me into retirement. We will return to Christchurch to reside here,” he said.