THE QUESTION OF RATES. (From Our Own Correspondent )

Otago Witness, Issue 2813, 12 February 1908, Page 34

THE QUESTION OF RATES. (From Our Own Correspondent )

WELLINGTON, February 9.

Will rates go up and also when? was the question put to the manager of a 'ocal fire insurance company by a represen 'stive of the Post. "No." was the emrAatic. answer ; " they must not while we have the State office as a competitor. Do you think there is a minister in the Cabinet who would have courage to raise the State rates when the business, if it does not show a handeome profit, does r.ot show a loss? But wait until the State office has had five years' experience, and then come to me as^ain. That some of the English offices will keenly feel the two Canterbury fires I have no doubt, but others will regard the losses as merely incidental to the business. It is all a question of management, whether English offires are severely hit or not. Assuming the losses on the Canterbury fires (Timaru and Christchuvch) at £300,000, and assuming that the fire income from the whole of the companies doing business in New Zealand amounts to £450,000 a year, and charging 33 l-3rd pc- cent, for working expenses against the premium income, ard estimating losses by bush fires and other causes at £50,000, the result of these two fires alone will be that the premium income from now on to the end of the year is absorbed, and the deficiency -will not be met by new business. Nevertheless, I de not think the rates will go up yet, and I know of no steps taken to bring- them up." Inquiries in other quarters showed that, as one manager put it, " for some time past insurance companies' losses in the Dominion have been paid with premiums collected elsewhere."

The losses in Canterbury last year amounted to £119,000. and in Wellington to £50,000, while at the close of 1906 the Lambton quay fire cost £80,000 in insurance.