THE FIRE HAZARD.

Dominion, Volume 2, Issue 437, 20 February 1909, Page 4

THE FIRE HAZARD.

At a time when-tliQ ©embers of the New Zealand^ > Assocmtion are 1 in .conference it is appropriate to discuss the fire haiarct. It is gen, eially. believed, 'that -the! unclorwritors will put up the rates on certain risks— that at least was foreshadowed by: 'the' chairman of the New Zealand Insurance Company in his speech to the'shareholders in Auckland a week or two ago. We have heard and again that fire uhr dorwriting in Now Zealand is noli only without profit, .but that the companion have actually fcst': money. That there is ground for this . contantiori has. bean

v. 8 ~ ■' cm; the publib : Cannot be expected to accept such Statements at' their full value without some proof- expressod in figures/ We have gone to some trouble to arrive at, a conclusion 6tt this point and the fire losses—that is the insurance losses—as well as we can figure thein up, for. the past five years, wore as undent : tosses. '■Year; / 425,400 :: Mi ■■ 320,000 . .. I" 6 ■ ... 420,000 \ 'JS& 352,000 1903 ••• ;.. 600,000 Tho figures are only approximate,' and inolude the net losses of the State Fire Office. This is a very bad record; and the figures for 1908 arb oxtremelv lar&i. 1-mf,

they. are, only an estimate. The lossce appear to afford some justification for a revision of the rates', but we would direct the attention of. the underwriters to a we'alsfiiessf6n their part in dealing;with the subject-. The members of the Association operate under a tariff,- arid the tariff ig disfigured with anomalies, it is unscientifio' and in some respects unfaij in its application. Rates on fire-resist ,icg buildings are in excess of what thej should be, just: as rates on dangerous risk? which ought not to be insured al all are relatively, too low. The man whc puts up a briok building with a flat rooi pay's the same iato as the man who, owns a building with a mansard roof. The one is penalised for the other.-: One out spoken authority expresses his View! of the position in the following plain terms''la their ravenous iappe tita for: business, engendered by the rivalry of strong competition, the com panies Will take & chance on aJniost afiy thing that can be reared on the earth'! Burfaco iiito the, air, knowing that wha, they lose, on this. class of business thej will make up oil the unjust fates agains first-class risks." How much of the fin losses debited to Now Zealand ate due t( this system 1 If a life office, worked. 61 the same plan and insured consumptive wholesale because it needed business, thOther assured would soon claim thei Surrender values and v leave the office We fully recognise the difficulties unde which the companies have been workini m the face of State competition and cu rates. There may be justification for re Storing the "special higher rating" whicl the Association abandoned .in }Q0 through fear of Competition by the Stat Fire,-Office. The speoial high rates wor Imposed upon individual risks on aecoun Of their individual hazard, which 'seem Quite tight, and the underwriters sliouL have the; courage to reimpose this rat even if it means a loss of business. Bu what is: wanted above everything is th elimination of the anomalies. in th tariff, and -this appears to bo a task 0 such magnitude that the underwriter apparently have not yet cared to ser 6usly face it, ■