Unusual Happenings Lift Underwriting Costs

Northern Advocate, 27 October 1949, Page 6

Unusual Happenings Lift Underwriting Costs

AUCKLAND, Thu. (P.A.) Extraordinary happenings on land and sea throughout the world had been responsible for the appreciably increasing loss, cost of underwriting, Mr Kenneth B. Myers said today, when presiding at the annual meeting of the South British Insurance Co. Ltd. The increase was mostly due to the greater risk in accident and motor vehicles.

Higher repair and labour costs and increased awards in third party claims had been experienced by all companies, and the generally unsatisfactory result of this class of business created one of tlie major problem of today. It was felt that' a real solution to the road accidents problem lay more in the education of the public rather than than in the adjustment of insurance premium rates. Mr Myers referred to the substantial fire losses in Palestine before the new state was established, and in Egypt. He said marine insurance claims

were lower and losses from theft and pilfering were down sharply.

In Australia, Africa and the FarEast Indies business had shown considerable buoyancy. There were hopes of resuming business in Shanghai before long. In USA, the company, in addition to fire business, had lately joined a marine writing group, headed by the New Zealand Insurance Co. Business in Canada now included Newfoundland. In these days of exchange controls and currency restrictions, it was necessary to retain liquid funds in each currency are.i to meet emergency.