INSURANCE AGAINST FIRE

Dominion, Volume 13, Issue 187, 4 May 1920, Page 8

INSURANCE AGAINST FIRE

COMPARATIVE STATISTICS

FINE RECORD OF THE STATE

OFFICE

Fire insurance statistics for the 'first timo in the history of the Dominion have just 'been issued by the Government Statistician. Tho Statistician, in his introductory remarks, says: "The majority of English-speaking countries have for some time collected and published official figures relating to fire insurance business. Portly with a view to remedying tho gap in New Zealand statistics, and partly with the view- of furnishing official data which might prove of use to offices carrying on business in the Dominion in fixing premium rates, etc., it was decided in 1919 that the Consuland Statistics Office should proceed .with the annual collection and compilation .of fire insurance statistics. It is recognised that one year's statistics are oi, little value in themselves. . . To be of any real value, a collection of fire insurance statistics continued over a series of years is essential, .. . ."

It is generally considered by insurance men that any period of less than ten years cannot give a reliable guide to the fairness or unfairness of rates imposed upon the public, because the occurrence of large confl/.grations makes for large fluctuations on tho losses and profits, and it is not an unknown phenomenon for the lasses of one year to absorb thu profits of several normal years.» The returns just published are not, however, without interest to the insuring public. Tho statistics are divided into eight tables—(l) Agencies, branches, and dates of establishment; (2) assets and liabilities; (3) assets in New Zealand; (4) premiums and losses; (5) revenue; (fi) expenditure; (7) working expenses ratios; (8) fires and losses. The figures indicate that the property owners of the Dominion have a wholesome regard for fire insurance. The policies in force in 1918 are recorded as num. Bering 522,273, amounting in insuranco cover to no less a sum than .£219,302,497. The, gross premium income is given a't .£1,347,771 ISs. 7d., representing a ratio of O.GI per cent, of the sum insured. The number of separate fires was 2950, and the total losses .£472,246. or 0.22 per cent, of the sum insured. The gross percentage of losses to premium income was 35.04. and the average loss per fire .£IOO fc. Bd.

The State Office and the New Zealandowned companies are the most popular with the insuring public. Of the number of policies current in 1918, tho State Fire Office takes first place with 73,804 policies; the New Zealnnd Insuranco Company, 50,193; the South British, 48,941; the National Insurance Company, 28,412; and the Standard Insurance Company, 31,430. Tho- largest number of policies issued by a "foreign" company is 24,4Gfi.

In gross amount underwritten, the New Zealand Insurance Company has 423,821,951-; the. State Fire Office. 423,121,151; the South British, 418,84.3,890: the National Insuranco Company, 412,267,510; and tlie Standard Insurance Company, £10.467,84-1. The largest amount -underwritten bv a "foreign" company is 410,902,380.

In gross premium income the New Zealand Insurance. Company has 4144-,-014; the South British, 4125.844: tho State Fire Insurance Office, 4124,477; the National Insurance Company, 462,422; and the Standard Insurance Company, 458.1G8. Tlie largest gross premium income of any "foreign" company is 485,701.

The aggregate net income of all offices for 1918 amounted to 4902,008. The, net losses amounted to 4332.393, and the net expenses nmoimted to 4400,783; or a total outgo of 4733,176, leaving a net underwriting profit of 4108,832. '■' Of tho net premium income, the New Zealand Insurance Company received 4108.381; the State Fire Office, 490,077; the South British Company, 481.006; the National Company, 450,682; the Standard Company, 444,346. The largest net income of any 'foreign" company was 442.488. '

The. average working expense ratio for nil offices vrns 35.59. The expense ratio of the State Fire Office and the four New Zealand companies is as follows:—State Fire Office, 27.33:. Standard Insurance Company. 30.87; National 'Insurance Company, 33.08; New Zealand Insurance Company, 37.42; South British Insurance Company, 39.51. The Norwich Union Fire Insurance Company was the first fire office to open business in New Zealand. Its operations date from the year 1816. The New Zealand-owned offices commenced business as follows:—New Zealand Insurance Company. 1859: South British Insurance Company. 1872; National Insurance Company, 1873; Standard Insurance Company, 1874; State Fire Insurance Office, 1905. A' prominent feature of tne statistics is the remarkable growth of the State Fire Office. After only 14 venrs' operations it stands first as the holder of the greatest number of policies, and second in net premium, against the largest of the companies. which have been in business from 44 to 59 years.

productive but under-populated. What I would like to impress upon all is that New Zealand ennnot over-produce. With her 1,228,000 population this country has 35,000,000 sheep, but it wouldn't make- much difference, nono at all in fact, if she had 70,000,000 shfep, as: the world's market is able to absorb any quantity. Curious as it may seem, the war improved the' Btandard of • living with many peoples. Those of Central Europe our Allies or our prisoners, ascertained the desirableness of obtaining produce from overseas, and so l'.ew markets will have been created for your meat. Japan is becoming; a carnivorous race, and now that the Japanese can afford to buy meat, he , ; s no longer content to live on rice. The Jnpaiieso in r/mdon eat as we do, and the travelled Chinaman no longer thinks of using tho chop-sticks any more than he sticks to bird's-nest soup. They all want meat and are going to get it. Japan bought ,£5,000,000 worth of wool last year. Canada has onlv 2,000,000 sheep, and a population of 7,500,000. and the United States has only small flocks and a population of 120,000,000, so you see Canada, the States, and Japan could consume all your primary products (without thinking of Europe at all); arid provide you with a market much nearer home, and that is not a static position, but it is an increasing business. Japan and Canada both tend to become manufacturing countries, and tho United States is already a full importing country: that is to .say, it imports more food-stuffs than it escorts. As that condition grows the demand for NewZealand produce must become greater. . . . And Canada (once called the granary of the Empire) must become the granary of the United States, for I have never yet encountered that type of patriotism that is superior to commercialism. So the outlook as far as food is concerned for tho Old Country jr a serious one, and one that will become mora serious as the years go on, and the demands of contiguous countries on producing areas become greater. So to keep paeo with the enormous demand for produce New Zealand must have population, and if this fair Dpminion is to be saved for the Empire it i'b a vital necessity that the country shoifjd obtain some millions more of population, as it is only by doing so that it can bo defomled when the struggle for the 'master of tho Pacific comes."