The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-03-06
Tho Insurance Business.

party.
The Insurance Business.
\ good deal of discussion has lately
taken place in the newspapers in regard
10 the insurance business, and its re-
Iations to all the Industries aud enter
prises of civilized life. Perhaps the
subject has never before received the
same amount OF attention. These arti-
cles have been called out by the UMPIRE
cedented number and disastrous results
of last years fires. and especially by
the ruinous losses entuiIed upon sew
eral insurance companies OF hitherto
good repute and unquestioned solvency.
The aim OF the writers has been to
show that as a business insurance has
been too loosely conducted of late years,
owing to the vast competition started
into life by the temptation of extraordi-
nary profits. y number OF persons have
supposed that all that was necessary in
order TO get II handsome per cent. on
their money, was to start an Insurance
Company, elect some friend its sec
Rotary, and commence the bust
ness OF taking risks as fast and as pro-
miscuously as they could be obtained.
While the tide was in one direction,
and everything was fair weather, very
nice profits were realized, and the BUSH
ness was supposed to be IA good sort of
speculation, but when it turned, rs turn
it did, the discovery was made that In
suranee was not Il speculation-not a
species of gnmbliDg-but regular,
legitimate pursuit, the natural laws of
which could DO no more overlooked
or violated than those of any other de-
partment OF trade or commerce. This
discovery has been made mt IA very
heavy expense to those who relied
upon blind luck hitherto-at the
cost, perhaps, as Is intimated, OF
"One-half of the insurance capital of
the country" The consequence is. that
there is sort of panic among those
who were formerly enthusiastic in the
business. Some companies have been
quite as willing to wind up and save
the remnant OF their stock, whatever it
might be. as to 60 on Mt IL farther risk.
This, in some cases ut least, Is not very
creditable to the companies in the mat
ter of intelligence. As tho Cincinnati
Commercial very we'll observes, there
is no occnslon for panic in insurance
matters, but there is great necessity for
reform in the manner of doing bust
ness" a season of calnmities was to
have been expected, and should have
been anticipated by all insurance COM
panies.
Experienced and Intelligent under
writers know that there are periods.
lastiug sometimes for four or five
years, when there are but few losses,
and they know that these periods are
succeeded by seasons of disaster, just
ns severe storms follow unusual calins
In the season OF prosperity which has
Just closed and is now being followed
by "A season of adversely II would have
been proper for the insurance COM
panieS TO have "laid something by for
a rainy day" But few OF them did
this, and those few will safely ride out
the storm which now threatens.
II was the duty of the companies to
retain large share of the profits of
seasons of prosperity, to provide
against the losses that We're to come to
set all things even; but a large majority
of the companies paid out these profits
in dividends, made public their great
prosperity, which was mistaken for
real and permanent, when II was illu-
anu invited COmDeLI-
ton when there was no necessity, not
oven room for il; tempted the cupidity
OF incompetent men, thus bringing
upon the business misfortunes which,
outside of the natural sea-
sons of adversely were almost
certain to bring ruin upon it.
competition reduced rates: incom-
petent men destroyed healthy and
proper rules for the adjustment and
payment OF losses; and the business it. |
self has been descending from a Iepiti- |
mate and Indispensable branch of com |
merce, and one requiring in its trans- |
action sound Judgment knoNIe,l,Je !
OF the laws OF trade; of the nature und I
values or merchandise generally; Of I
manufactures and mechanics. and their (
peculiar hazards and liability to dam
age and deterioration-to a mere poli-
cy gambling scheme, where all is treat
ed as game of chance, aud not accor-
ding to fixed and inevitable laws. In
suranee can be transacted with as
much certainty as to results, rs IA field
can De planted or sown with seed, aud
Ine Intelligent underwater tranSacts
ms business in this way. There are in
surance men, however, who have no
nxed rules for their guidance. hut think
that If risk terminate safely. there is
that much good luck II other wise, il is
simply bad luck"
The first necessity of the business, in
tne estimaton of the writer from whom
we quote, is a wedding out process,
such as shall seperate the wheat from
me chaf, or in other words, such as
shall place the business of insurance in |
a fewer number of hands, and those
hands entirely responsible and intelli- |
gent 1t is from ian excess of conpa-
mics and incompetent men, that the
business is demoralizsd and the public
endangered. Remedy these evils "aud !
we may hope for u healthy and proper
advance in rates, and, what is ouite ms
Important, an equitable aud prnnar
mode OF adjusting and paying iosses 4
Then will follow an increase OF busi-
ness to that figure which is indispenss-
Die; for unless n company can do I
enough TO maintain a proper average /
1Ine OF risk, it will asSuredIy lose /
The editor OF the Raaaspha Journal,
writing from Wheeling, few DAYS ago