FIRE LOSSES

Dominion, Volume 22, Issue 133, 1 March 1929, Page 18

FIRE LOSSES

MATTER OF GRAVE CONCERN £1.257,515 INVOLVED IN 1927 During recent years the fire-loss problem in the Dominion has been a matter of grave concern to the insurance offices. In 1924 the amount paid out by way of compensation, reached the then unprecedented figure of £1,046,328. The increase in that year, however, was mainly the result of one particularly disastrous outbreak; and in 1925, although heavier than any other year, with the exception of 1924, there was a decrease of £169,970. The year 1926, however, saw a further rise to £1,127,140, but even this was eclipsed during 1927, when the amount paid to the insuring public totalled £l,257,515. The ratio of fire losses to premiums works out at 64.46 per cent., compared with 59.21 in 1926 and 41.40 five years earlier. Tne number of fires concerned has increased during the quinquennium by 2411, making the percentage increase 59.83, while the average loss per fire during the same period has risen from £lBl ss. lOd. to £195 4s. 9d. The above information is supplied in a report on the insurance statistics of the' Dominion for 1927, which has just been issued from the Census and Statistics Office.

The following table, the report continues, shows for the years 1898 to 1927 the premium income and the fire losses. Statistics of fire insurance have been collected only since 1918, and the figures prior to that date have kindly been supplied by the Council of Fire Underwriters’ Associations of New Zealand, and refer only" to those insurance offices in New Zealand which are members of the Council of Fire Underwriters’ Associations. The official figures from 1918 to 1927 (inclusive) refer to all offices, and this fact must not be lost sight of when comparisons are being made: — The total number of offices engaged, in transacting fire insurance business at the end of 1927 was 42, being one less than in the previous year, the Dominion Cooperative Insurance Society having gone out of existence. The various offices were represented by 159 branches, and the total number of separate agencies amounted to 14,113. The principal registered offices of the several companies were situated as follows: —England, 21; Australia, 6; United States, 2; HongKong, 1; and New Zealand, 12. The amount of fire insurance cover in force on property in New Zealand on December 31, 1927. was £404,408,924, represented by 713,928 policies. The increase in the amount during the five years 1922-27 amounted to £110.762,652, or approximately 38 per cent. The total amount underwritten daring the year, exclusive of reinsurances accepted, was £441,695,349. The total premiums charged amounted to £2,110,246, while return premiums on account of cancellations, etc., totalled £159,510, leaving the net premium income on account of direct insurances at £1,950,736. The average premium per cent, for 1927 works out at 9s. 7d., compared with 9s. lOd. in 1926 and Ils. lid. five years earlier. The number of separate fires in the Do- ' minion during the year was 4983. There were 46 conflagrations, while the total number of buildings, etc., affected was 5366. Fire losses totalled £1,210,661. Losses in the North Island were over two and a half times those in the South Island, the figures being £855,887, as againust £329,805, while the number of fires was greater by 1417. Of the four principal urban areas, Auckland suffered most, as regards both the number of fires and the losses paid out. Auckland also had the highest ratio of loss to cover, Wellington having the best record in this respect. The effects of the greater fire-fighting facilities in the cities when compared with the rural localities is stated. Whereas the ratio of loss to cover in the four principal urban areas averages out at 10.55 per cent., and that for the secondary urban areas at 18.33, the ratio for the remainder of the Dominion is 85.09.

Premium Fire income. losses. £ £ 1898 .... 382,284 302,490 1899 .... 399,110 185,210 1900 .... 432,944 254,006 1901 .... 453,583 385,609 1902 .... 490,722 215,500 1903 ... ...... 527,861 ' 223,000 1904 .... 565,000 427,874 1905 .... 494,822 322,496 1906 ... 508,222 407,869 1907 ...< 538,076 341,444 1908 ..., 578,222 544,006 1909 ..., 596,769 1910 .... 637.856 368.887 1911 ... < 688,820 424,194 1012 733.945 406,385 1913 « 790,'525 450,970 1914 .... 813,469 434,310 1915 .... ...... 854,509 4331467 1916 .... 912,222 373,896 1917 .... 969,186 531,121 1918 .... , 1,241,829 472,247 1919 ' .... 1,351,083 390,598 1920 .... 1,622,048 448,656 1921 .... 1,768,416 738,638 1922 .... 1,785,308 739,075 1923 1,780,463 796,281 1924 .... 1,772,924 1,046,328 1925 .... ..... 1,886,290 876,358 1926 .... 1,903,675 1,127.140 1927 .... 1,950,736 1,257,515