The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-03
RATES MAY ADVANCE
Fire Insurance Companies Want to
Make Profits Sure.
WESTERN MANAGERS IN SESSION
Minneapolis Business Men Will OPP
pose Any Move to Increase
Their Rates.

Presidents and managers Of fire insur-
ance companies are discussing plans for
an advance in fire insurance rates.
whether there is to be fiat increase in
rates In western states has not been de-
clded. 1t is said that the executives OF
radical action. They simply desire some
plan that will make insurance profits bet
ter and more reliable
Detailed results for 1901 in fire insur-
ance are now being compiled. The general
statement embracing the United States
and Canada shows about 100000 greater
loss than during the previous year, which
was very unsatisfactory. It is already
predicted that more companies will with
draw from business this year. About
twenty-five domestic and foreign COM
panies retired from the fire insurance
business in the past fourteen months.
An Improbable Year.
The western situation is to be discussed
by meeting Of western fire insurance
managers in Chicago to-day. So far none
or the western states have submitted
hgures on last years losses and receipts
for the consideration of the public. AS a
general thing the insurance men assert
that the year has been Improbable. Some
of the companies made money in Minneso-
ia, but 1t IS said that more did not. There
is the same kick on the Dakotas, and es-
pecially on North Dakota, that came up
last year. Some of the Chicago insurance
experts have figured that Minnesotas loss
ratio for 1901 is 10 per cent lower than
that of 1900. Minneapolis made a first
class showing last year. It's loss ratio is
believed to be low in comparison with
other western cities, and especially with
st. Paul. The latter city has made bad
start for 1902. Insurance men say that
it has already scored loss ratio on the
entire years business of SO is per cent.
Rates on many risks were gradually in
creased last year. This was done by max
ing new classification of risks and rat
ing on an entirely new schedule. The in
crease fell largely on manufacturing
plants, wholesale houses, department
stores and like institutions. On some Of
the smaller risks rates were lowered, but
the general tendency was toward an in
crease. It was thought that this plan
would solve the problem. The new clas-
siication was based upon the experience
of many companies lasting through many
years and was generally applied through
the west. 1t is now said that this scheme
of getting more money out Of the insur-
ance business is working too slowly to
suit the promoters and some faster plan
Is wanted.
Lower Local Rates.
The Commercial Club insurance COM
mittee intends to renew it's activity on the
subject Of fire insurance rates. The COM
mittee took the ground last summer that
Minneapolis was entitled to lower rates
on account of its low ratio of loss. Com
parsons were made with st. Paul. which
receives about the same rates, but which,
has much higher loss ratio. While not
taking direct issue with the committee at
the time, insurance men said Minneapolis
showing on losses might not mean that
she was entitled to lower rates as much
as that St. Paul should be advanced. Local
possible action by the insurance COM
panies. They object to higher rates. The
insurance men insist that no drastic
measures are to be taken. What all the
companies ask is a reasonable profit on
the business. .r ,''