LOSSES FROM FIRE.

New Zealand Herald, Volume LX, Issue 18459, 24 July 1923, Page 9

LOSSES FROM FIRE.

SIGNIFICANT INCREASES. DOUBLED IN TWO YEARS. ROOM FOR INVESTIGATION. [Br TELEGRAPH.OWN CORRESPONDENT. • ■WELLINGTON. Monday. A significant relation between the depression -at d heavy fire 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 the previous year. An interesting comparison . is afforded by the loss ratios for the past three years, as follows:—1920, 17.01 per cent.; 1921, 27.95 per - cent.; 1922, 32.02 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 place since the "boom" had been accompanied by a great increase in the number of •• outbreaks of i fire, and a substantial rise in the loss ratio of ' all offices doing business in the Dominion. It was quite apparent 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 has power to call for : the necessary data. It could ,be said that the re-grading of the rates of premium is no doubt necessary, both from the point of view of the cost to the public, ana the equities as between the different classes of risk. . ■ . "The year from an insurance point ot view has been marked by . greatly increased competition, due partly .to a reduction in the amount of new business available,, and partly to the entry. of several new offices into the competitive field. One result has been that reasonable caution iii •• values has in many eases..mill* tated against the business of carefully, conducted offices to the temporary advantage of less careful . competitors. ' Another result has been the illegitimate use of the agency appointment system, whereby unwarranted rebates have been 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 some effective method of dealing with; this difficult question requires early consideration." " ■■ i . . The report shows that the net premium income for the year which ended on December 31, 1922, amounted to £142,592, as compared with £136,429. for 1921. ;■ This increase is considered satisfactory, in of the heavy fall in-the value of buildings and stocks during the year, and the .consequent reduced demand for insurance cover. The net profit for the year amounted to £46.403, as compared ; with : £39.325 : for 1921, and the .total' assets ;at the end of the vear amounted to £447,605, as against £405,301 for. 1921. . • • . *