GOVERNMENT INSURANCE DEPARTMENT.

Opunake Times, Volume III, Issue 114, 6 August 1895, Page 2

GOVERNMENT INSURANCE DEPARTMENT.

The annual report of the Government Insurance Commissioner for the year ending Blst December, 1891, shows that that department still retains the confidence of the public, and notwithstanding the severe depression which w r as felt throughout the colony during the year, satisfactory business w'as done. There were 4440 proposals received for an amount of £995,159. Of these 8271 were completed, insuring £729,013. There w 7 ere GO2 policies issued in the temperance section, insuring £125,085. One great feature of the new business is that more than one-half the policies were issued under the Endowment Tables. This indicates that insurance is becoming more in favor as a means of providing for old age ; whilst from a departmental point of view, it provides an increased premium receipt for every £IOO of insurance, and consequently a decreased ratio of expenses. Besides, endowment policies are more likely to remain on the books, which goes to stengthen the business, as it is quite a mistaken popular notion that a great profit is derived from lapsed or forfeited policies. The best proof of this is to be found in the fact that companies with the lowest rate of forfeitures pay the highest rate of profits. The reason for this is clear. If it is a profit to a company or society to collect a first premium from an insurer, out of which medical fee, agent’s commission, and initiatory expenses have to be paid, how much more profitable must succeeding years’ premiums be which are not subject to any such charges ? Therefore, the greater the number of succeeding years’ premiums received the more profitable must the business be. The new premiums received for the year amounted to £23. U 7, being an increase on the previous year. The interest r, ceipts were £115,270, and the t >tai annual income amounts to the handsome sum of £839 178. The rate of expenses was about 15 per emit, which shows a steady decrease and gives evidence of careful management, when it is considered that some private companies cost as much as 25 per cent. Tire department has now been in existence

for a quarter of a century, and during that time has paid in death claims £990,540, besides £140,429 on matured endowments, thus showing a return of £1,180,000 to policyholders or their representations, whilst the receipts from interest were £1,081,000 during the same period, or only £50,000 short of the total claims. Those in charge of the department have every reason to be proudmf the success achieved in the face of such ceaseless opposition, aud to the intimate knowledge of insurance matters possessed by the Commissioner, Mr J. H. Richardson, may be fairly attributed a great part of its success.