The citizen. (Frederick City, Md.) 1895-1923, 1902-04-11
SERIOUS SITUATION IN FIRE
INSURANCE.

Statistics compiled by the Journal of
Insurance Economics from results of
fire uuder~ riting during the past three
years show that a6normally low rates
have been charged, with a consequent
heavy underwriting loss under normal
rate of burning, and Il marked move
ment toward the Capitalization of bust
ness in the hands of the larger com
panies. IT is shown by an extensive
table that the stock fire companies
operating in America have lost on the
basis Of premiums earned over S37 ,00O,
600 This, of course, is naturally cut
down by profits from investments. 1t
represents an underwriting loss of
nearly nine per cent. During this per-
iod the surplus funds of these compan-
les have been reduced S4,654, 900. To
put the matter palmer during the past
three years 62.7 cents out of every dol
lar of premium has gone to pay losses,
W lillNN ~ ANuAo lltA' EOAiN " ihAN IN HNh
ses, leaving deficit of 81 per cent.
This :. : per cent sums up Sll .529, 600.
These figures are taken from the re-
ports of the New York Insurance De
parlment and show that the recent
raise in the rate on special hazard risks
was made rs matter Of self protection.
| There has also been marked decrease
in the number of companies doing
/ business. In 1899 the number was l64
reported to the New York Department.
! In 1902 there are only I'D, three conf
4 panes having withdrawn since the
first of the year. The Journal of In
surance Economics states that the Gen.
! tralizatiou of business in the hands of
the larger companies is the result of
numerous retiremeuts and the uncer-
tainty Of the insurance maket which
makes the agents place their business
in the hands of strong companies.
Fire insurance is Il matter which in
terests all who own property and every
one is awake to the opportunity to get
a maximum amount of prot elton with
the minimum amount of premium
costs. The rates charged i'm this city
and county are moderate compared 10
other places, even with the recent in
crease added, which effects only certain
classes of property. In the larger cities
the merchants and property owners are
fighting the insurance companies for a
restoration of the old rates or at least 4
compromise, but at present there seems
to be no likelihood that their efforts
will be of any avail. Conditions seem
to justify the companies action and
whilst it may be hard on some or in
communities where the fire loss is
slight, it must be remembered that the
policy holders must help to pay all
losses in his or another's territory. 1t
is mutual protectorate. There is one
way that insurance rates can be re-
duced all over the country and that is
for more careful compliance with fire
proof regulations in the erection of new
buildings and the improvement of old,
to be insisted upon by municipalities.
In all cities and towns certain require
meut should lie laid down and com.
pliance compelled. Especially does
this refer to the installation of electric
lights and the proper Insulation of all
wires, electric or otherwise. Houses
with shingle roofs should be protected
with asbestos undermining or treated
with tire-proof solution. Every meas
ures of precaution Is suggested in the
light of modern knowledge and for the
protection Of our own and our leigh
bors' property. With such condition
existing, Insurance rates would neces-
sarily be reduced and the field of oper-
alton for smaller companies cores
pondingly enlarged.