INSURANCE RATES

Southland Times, Issue 20963, 21 December 1929, Page 7

INSURANCE RATES

THE PROPOSED INCREASE. PROTECTED AREAS BARELY AFFECTED. (Per United Press Association.) Wellington, December 20. “The proposed increase in the fire insurance rates will in the main apply to risks in county unprotected areas, and therefore will barely affect protected areas. The rates on dwellings will not be affected.” The above statement was made by the president of the Council of the Fire Underwriters’ Association when interviewed today. “The huge fire waste of the Dominion which is receiving the consideration of the Government and which is estimated by Captain Hugo, Inspector of Fire Brigades, to amount to 22/6 per capita, has caused very serious losses to underwriters,” stated the president. “Statistics collected by the Government Statistician over the last five years show that certain classes of business risks have been particularly unprofitable. The question of revising the rates on the basis of the Government Statistician’s returns has received very careful consideration, and as an outcome it has been found necessary to increase certain rates if these risks are to secure insurance protection. No general increase is contemplated, but special attention has been given to business risks situated in areas where fire protection and water supplies are absent or inadequate. The figures on which these increases are based were compiled by the Government Statistician from time to time for the purpose of framing a scientific schedule of rates, the object being to adjust the rates equitably as between the different classes of risks, according to the claim disclosed on the rates. The State Fire Office figures are included in the Government Statistician’s returns, and the increase it is understood will be observed by that office.” The increases are to take effect from January 1.