FIRE LOSSES.

Hokitika Guardian, 25 July 1923, Page 4

FIRE LOSSES.

EXPERIENCE OF STATE DEPARTMENT. WELLINGTON, July 21. An increase of £7905 in the Fire Insurance Department last year prompts the General Manager to make very pertinent comment on the curious relation between low loss ratio when values of property are high, and the increase when values drop, “Losses showed an increase of £7905 over the previous year,’’ he remarks, “and the increase was anticipated, as during the period when high values operated, the loss ratio fell to a remarkable degree. On the other baud the fall in values which lias taken place since the boom has been accompanied by a great increase in the number of outbreaks of (ires and a substantial rise in the loss ratios of all ollices doing business in the Dominion. The State Eire ratio of losses to

“It is quite apparent that a large proportion r.f the outbreaks ate prevcntible in diameter.” adds the General Alamiger. “The question of investigation of less experience of lire offices.” remarks the report, “is under consideration by the Government Sint istii-inn, who hn.*> power In ask for the necessary data. It can lie said that tlie le-grading of the rates of premium is undoubtedly nou's-;-arv. bulb from the point of view of tile io-.t to the public, and the equities in between (lilferynt classes of risk.” The Dep irlmcnt’s profits for the year v, er ■ £ Li. ’ 13 inmnared with £39.32-") for the previous year, and the reserve i'nml stands at £2P.sti(>. The reporl brief!.' indicates that recent legislation will enable settlement to be made at an early date in connection with tlie rebates to insurers which were provided for in the Act under which the Department was established, ft is mentioned that, the practice of granting unwarranted rates to attrait business, by agency appointments which are nut, legitimate has reached serious proportions. to the great disadvantage of ollices which sanction only legitimate agencies, and that this question requires consideration.

1 j;!i! 11’ s.- have liucn :—■ Loss ratio. in*r cent. 3t)'2(! 17.01 U)'J! ... 27.95 v.:-n O'J.oJ