INSURANCE RATES.

Taranaki Daily News, Volume LI, Issue 43, 10 February 1908, Page 2

INSURANCE RATES.

INCREASED RATES NOT ANTICIPATED. Per Press Association. _ Wellington, Last Night. "W ill rates_ go up, and, if so, when?" was tlie (piestion put to the manager of a local hie insurance eoinpanv vesterday._ ' ' "Ho," was the emphatic answer; "tlhiy must not while we have the State office as a competitor. Do yOu think there is a Minister 111 the Cabinet who would Have the courage to raise the State rates when the business, if it does not show a handsome profit, does not show a loss? Tint wait until the State office has had > ,<?n . rs experience, and then coinc to "!S "S* l "-, That some of the English oftcpg will keenly feel the two Canterbu v fires 1 have no doubt, but others Will regard the losses as merely incidental to the business. It is all a question of management whether the English offices are severely hit or not. Now, assuming the insurance losses on the Canterbury nres (Timaru and Christcm roll) at £300,000, and assuming that the lire income from the whole of the companies doing business in New Zealand amounts to £450,000 n year, i.id charging 33 1-;! per cent, for working expenses against the premium income, and estimating the losses by bush fires an<l other causes at £50,000, Ibe result of these two lives aldne 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, T do not think (lis Kates will go up yet, and T know of no steps taken lo bring them up." Inquiries in other cpuitiers showed that, as one manager put it, "for sumo time past insurance companies' losses in the Dominion have been paid with premiums collected elsewhere." Losses in Canterbury Inst year amounted to CI 10.000, and in Wellington €50,00(1. while at the close of 1000 the Lainbtonjiiav lire cost CBO.OOO in insurance.