St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-09-23
A HEALTHY GROWTH.

The Rapid SIrides Made in the In
surance Business in the Past
Year.
The seventeenth annual convention OF
the National insurance commissioners was
held at the Ryan yesterday forenoon.
There were present Commissioners c. P.
Sweigert, of Illinois; II. J. Reinimund, OF
Ohio; o. Pillsbury, of New Hampshire; l.
II. Cross. of Rhode Island; A. r. McGill,
OF Minnesota; Deputies j. j. BrinkerhOlf,
Illinois; Robert 3. Brinkerholf. of Ohio;
B. S. Tedman, of Colorado; G. E. King, OF
Missouri; j. II. Sprague, of Connecticut,
and w. s. Smith, of Massachusetts,
The only business transacted was the
reading of an address by Hon c. P. Swell
CERT. which was accepted and placed on
file. After the reading and discussion OF
matters of little interest to the public, the
board adjourned for one year, the greater
number of the members returning TO Chi
cago on the afternoon trains. From the
address, which was Yir6ually an annual re-
port, the following briet extract is made:
The progress achieved by the insurance
business, even since the organization OF the
national insurance convention OF the TINTED
States in 1871. is wonderful The fire inSur-
aDGS business LfauSaCtGQ III 1911 III tAC
United States by all the companies aggre-
gated 81 100 365 915 risks written, $50, 81, O5l
premiums received. and S5l,597,274 losses
paid. The result of the business of 1885 was
SIC, POS. 6SS, $50 risks written, S92 5S4'Sl6 pre-
miums received, and S53 t09,5l9 losses PAID.
The business written during the last
i've years was more than one-thlrd
greater than that written from 1875 TO 1885,
In the life insurance business the result has
been of Il similar character. The gross assets
held in this business increased from 81 "
16. OBS in 1869 10 S524 664, 6IS in 1889. ana the
surplus from S47, 453, 05+ in 1859 to S92, AZ
4S6 in 1855. The statistics of the fire insur-
snce business of 1885, as compared with that
of 1884, may be briefly stated To be lower
ratio of losses to premiums. lower ratio OF
losses to risks written, higher ratio OF COM
missions TO premiums and higher ratio or
expenses to premiums. These facts seem 10
indicate that it is within the power OF the
companies TO better the condition OF their
business Commissions and brokerage con-
stitute one-half of the expenses OF the busl-
ness. That retrenchment in this direction
is possible does not admit OF DOUBT; that
II is practicable. in the wild competition for
business. without combined action on tne
part of the companies is not so clear.
The fire loss in the United States in 1884 is
reliably estimated to have reached $40, OtO,-
coo; in 1885. S103, 900, 600, and in the hrst SIX
months of the present year, S53, 9OO,OOU How
TO check this enormous drain upon the
wealth and industries of the country, and
confue the fiery element to its legitimate
limits is question, the solution OF
which affects the prosperity OF the
state and the interests of both pOlicy-holder
and company. 1t is essential to an Intelligent
consideration of the remedy to ascertain if
possible the cause of the evil. 1t is usually
more difficult to apply the remedy than to
discover the evil. In connection with this
subject, this question, it seems to me, might
very appropriately be considered. Would
not the desired end be greatly facilitated by
the sacrifice on the part of companies of some
of the volume of business to the character of
the risk and a more liberal and wiser eXpend-
iture in the matter of inspections. l think,
as an initiatOry step towards the correction or
the evil thorough inquests and reports should
be made of the origin, nature and results OF
ali fires This of course, would require the
action of our legislatures. Legislation upon
fire insurance since we last met embraces the
enactment, in the state of Kentucky.
of a law for the licensing of
brokers and the placing of surplus
lines in companies which have not complied
with the laws of the state. In life insurance
we ind considerable improvement in the bus
mess of 1885, which, we are told, has contin-
ued into the present year. Assessment life
insurance has closed another year of its his
tory and another year of growth in this coun-
try In 1885, siXty-siX associations doing
business in the state of Illinois collected
s6.IS4.S $50 from members, and S297,25S from
other sources, and paid to benehciarieS
S.. 223. 552. and for expenses S1.645,5T7. The
statutes of most of the states relating to this
business are imperfe ct, indefinite and ipcom-
Dlate"