ADVANCING AGAIN

Dominion, Volume 28, Issue 167, 11 April 1935, Page 14

ADVANCING AGAIN

Insurance Reflecting Signs of Recovery VALUE TO PUBLIC Statement by Acting Prime Minister “Insurance offices operating in New Zealand, although mostly private corporations, shoulder great public responsibilities, and these responsibilities mpat increase with the needs of an advancing civilisation, with increasing recognition of the need for making provision against risks of all kinds,” said the acting-Prime Minister, Rt. Hon. J. G. Coates, when officially opening the Prudential Assurance Company’s new building yesterday. “The part which insurance plays in the economic life of the community cannot be over-estimated. It offers facilities to the private citizen to make such provision for the future for himself and his dependents as would be difficult, if not impossible, in its absence. It lifts from the shoulders of business enterprise many of the uncertainties and risks of loss which unavoidably afflict it. This it performs at a cost which is small in proportion to the service rendered. Source of Strength. "In the absence of insurance, such uncertainties and risks would involve a heavy cost which would be reflected in higher prices to the consumer. But insurance companies do more than this. In the course of their business they accumulate an enormous volume of capital.' In the last resort, this represents the liability.of the companies to policy-holders, but until such liability requires to be met the funds are a tremendous source of financial strength, and represent a fund for investment to meet the needs of industry and trade and of local and national governments. “The Prudential Assurance Company Limited was established in 1848. It

was originally established as a purely life insurance office, though now it takes all classess of business, and has become one of the great British insurance companies, with branches throughout the world and with assets and funds reaching the colossal total of £277 millions. “

“The company is a comparatively recent entrant into New Zealand, its establishment here being as late as 1923,” went on Mr. Coates. “It is gratifying that-the company has thus early in its history in this country expressed its faith in the future of the Dominion by investing in this splendid building. No doubt the company has been influenced by the fact that insurance of all kinds, and particularly life insurance, seems to be popular with New Zealanders. According to a statement prepared in 1933 by the Los Angeles Chamber of Commerce, New Zealand occupies third place throughout the world in life insurance per head of population. The United States ranks first, Canada second, New Zealand third, Australia fourth, and the United Kingdom fifth. Insurance Recovering, Insurance in this country, like other businesses, has suffered in the depression, but it is advancing once more as signs of recovery have appeared.- The latest comparative figures for the Dominion issued by the Government Statistician indicate that the downward trend in new life business was arrested in 1933. “Discontinuance of policies, which had assumed serious proportions in 1931 and 1932, showed a substantial decrease in 1933, and the net result of the transactions for 1933 was to increase the amount in force by £781,974, as compared with a net decrease of £609.240 in the previous year. “Generally speaking, insurance oilices in this country are fully seized

of their responsibilities, and we have never yet had a serious failure. It would be a national disaster if such a failure occurred, and it cannot be too strongly urged that the supreme virtue of insurance is full security for the due performance of all contracts entered into. Without security, insurance would cease to be a service and would become a trap for the prudent.” “I am pleased to be present this morning for the purpose of opening this building,” concluded Mr. Coates. “I should like to congratulate the Prudential Assurance Company on its vision and enterprise in erecting so magnificent a monument to I lie company’s strength and stability; it is a building which does credit to the capital city and enhances its beauty. I hope that, as times improve, it will set a standard of architecture which other business houses will be able to follow.”