FIRE INSURANCE.

Otago Witness, Issue 3958, 21 January 1930, Page 7

FIRE INSURANCE.

RATE OF LOSS IN DOMINION. RESERVES FOR CONTINGEXCIES AUCKLAND, January 14. The veteran chairman of directors of the Yorkshire Insurance Company, Sir James Hamilton, of York, who arrive') from Sydney by the Aorangi, is revisiting New Zealand after an interval of nine years. Sir James has been mi a visit to the company's principal branches in Aus tralia, and will return there after spending a fortnight in New Zealand. IL will visit South Africa on his way back to England. He is accompanied by Lady P milton and by Mr ' r . T. Sadler, tin company's superintendent for Australia ami New Zealand, and Mrs Sadler. Sir James Hamilton said ne has watched with interest the progress that New Zealand is making. Ask'd is he intended to make a special inquiry about the high rate of fire loss in New Zealand, Sir James said he would merely point out that property destroyed by fire was really lost, notwithstanding the in surance cover. The insurance companies were able to distribute the burden of loss very widely, so that the individual felt it less, but it was a mistaken notion that insurance could make good to the community for perishable property that went up in smoke. Much was heard of the large profits made by the insurance companies, proceeded Sir James, but the position was I generally misunderstood. A few years ago | several of the largest English companies I had taken out figures of premium and j losses paid. These showed that the underwriting profit was in the neighbour I hood of 5 per cent. It was quite true | that many of the companies paid large dividends to their shareholders, but thes*die not come to-day from the business of insurance so much as from large reserves which the companies had built up. Thi reserves were only such as a prudent in- ! dividual would try to create in his private estate as a provision for the future and | for contingencies. In the insurauc- | business they were necessary to safeguar 1 also the interests of the policy-holders who were thus assured of full indemnity | in almost any contingency.