FIRE LOSSES

Evening Star, Issue 18334, 23 July 1923, Page 4

FIRE LOSSES

EXPERIENCE OF STATE. INCREASE WITH PROPERTY DROP. PREMIUM READJUSTMENTS POSSIBLE, (From Our Parliamentary Reporter.] WELLINGTON, July 21. An increase of £7,965 in the fire losses paid by the State Eire Insurance Department last year prompts the general manager to make very pertinent comment on the curious relation between the low loss ratio when values of property are high and the increase when values drop. The losses showed an increase of £7,965 over the previous year (ho remarked), and the increase was anticipated, ns during the period when high values operated the loss ratio fell to a remarkable degree. On the other hand, the fall in values which has taken place since the boom has linen accompanied by a great increase in the number of outbreaks of fires and a substantial rise in the loss ratios of all offices doing business in the dominion. The State Fire ratio of losses to business has been:

Loss ratio.—l92o, 17.01 per cent. ; 1921, 27.95 per cent.; 1922, 52.32 per cent. “It is quite apparent that a large proportion of the outbreaks are preventable in character,” adds the general manager. The question of investigation of the loss experience of fire offices (remarks the report) is under consideration by the Government Statistician, who has power to ask for the necessary data. It can bo said that regrading of the rates of premium is undoubtedly necessary, both from the point of view of cost to the public and the canities ns between different classes of risk. The denartment’e profits for the year were £46.405, compared with £39,325 for the previous year, and the reserve fund stands at £296,566. The report briefly indicates that recent legislation will enable a. settlement at an early date in connection with the rebates to insurers, which were provided for in the Act under which the department was established.

It is mentioned that the practice of granting unwarranted rates to attract business by agency appointments which aro not legitimate has reached serious proportions, to the great disadvantage of offices which sanction only legitimate agencies, and) that this question requires consideration.