LOSSES FROM FIRE.

Gisborne Times, Volume LIX, Issue 9574, 27 July 1923, Page 3

LOSSES FROM FIRE.

SIGNIFICANT INCREASES. DOUBLED IN TWO YEARS. WELLINGTON, July 24, A significant relation between the depression arid heavy tire losses by insurance companies is emphasised by the general manager of the State Fire Office. The fire losses of the office last year were higher by £7965 than in tlio previous year. An interesting comparison is afforded by the loss ratios for the pass three years, as follows: 1920 17.01 per cent, 1921 27.95 per cent., 1922 32.32 per cent. The increase in losses, says the general manager in his annual report, was anticipated, as during the period when high values operated the loss ratio fell to a. remarkable degree. On the other hand, the fall in values that had taken placo since the boom had been accompanied by a great increase in tho number of outbreaks of fire, and a substantial rise in the loss ratio of nil offices doing business in the Dominion. It was. quite ap-

parent that a large proportion of outbreaks were of a preventable character: “The question of investigation of the loss experience of fire offices," states the report, “is under consideration' by the Government Statistician, who lias power to call for the necessary data. It coidd he said that the re-grading of the rates of pi-env iums is no doubt necessary, both from the point of view of the cost to the public, and the equities as between the different classes of risk. “The year from an insurance point of view has been marked by greatly increased competition, due partly to a reduction in the amount of now business available, and partly to the entry of several new offices into the competitive field. One result Has been that reasonable caution in values has in many cases militated against j the business of carefully conducted I offices to the temporary advantage of less careful competitors. Another result has been the illegitimate use ot t’ho 'agofney appointment system, wherebv unwarranted rebates have

boon paid to attract business. This practice has assumed somewhat serious proportions,’ to the great disadvantage of those offices which sanction only legitimate agency appointments, and sonic effective method of dealing with this difficult question reel n ires consideration. ’ ’ Tiie report shows that the not premium 1 income for the year which ended on December 81, 1922, amounted to £142,592. as compared with £136,..'29 for 1921. This increase is considered satisfactory, in view of the heavy fall in the value of buildings and stocks during the year, and, the consequent reduced demand for insurance cover. Th«. net pir.hr for the year amounted to £46.403, as compared with £39,325 for 1921, and the total assets at the end of the year amounted to £447,605, an against £405,301 for 1921.