New Britain herald., 1917-07-20
NEAR BILLION IN
LIFE INSURANCE
Claims Paid in U. s. and Canada
Alone $476,900,000

In 1915 the HE insurance ulSCrlDu-
tions in the United States and Canada
amounted to $75S,500,O00, as COM
puted by The Insurance Press. The
payments for death claims, matured
endowments and other benefits
amouted to $475, 100000. For pre-
MUM savings dividends paid to pol
ic.-h olders), for the cash values of
policies surrendered, for annuities,
and to benefciaries under policies is
sued in foreign countries, the regular
companies in the United States and
Canada paid amounts, estimated in
part, that aggregated 1891, 100000.
Summation of life insurance pay
ments Of all kinds in 1915:
Claims paid ina the United
States and Canada. :. $476, 900, 900
Payments for premium
savings and surrender
values, and to annu-
ttants and in foreign
countries ............ 281, $4,000
Grand total 1888, 500. 900
Evidence of Business Prosperity.
The aggregate amount paid by life
insurance companies to policyholders
who lapsed or surrendered their pol
icies fell considerably below the 1915
record, indicating an improvement in
general business conditions.
The amount returned to policy
holders in dividends (premium saw
ings) advanced largely, indicating the
Increased economies Of management
and improved conditions in other d.
rections from which come contribu-
tions to the Invisible surplus.
The increase in the policy loan ac-
count was almost negligible. as shown
by the combined figures of companies
whose operations cover more than 90
per cent. of the business transacted
by American companies. In other
words, the aggregate loans on policies
increased only $1,S51,19O in 1916,
against an increase in 1915 OF more
! than $34.O0O,OOO and an increase in
1914 of nearly s6S,000,O00.
No more conclusive facts, indica-
tive of general prosperity, can be
brought forward than the reduction
In the amount of life insurance pol
icies surrendered for present cash
values and the smaller volume Of
borrowings from life insurance COM
panies on life insurance policies as
collateral. A continuance Of 1916
conditions would undoubtedly show
the policy loan account greatly re-
duced at the end Of 1917. but that
result cannot now be predicted. as the
effe@ts Of the war remain to be de-
termined.
Demand for Life Insurance Beyond
All Precedent
Nineteen sixteen was the greatest
year in the history of life insurance in
the United States as regards the
amount Of new business written. In
Canada also the new issues exceeded
the'1915 totals and approached to
the biggest life insurance year the
Dominion has known. In the two
countries $4,000, 100000 Of new bust
/ ness was written, about s4,270 900, 900
In the United States and $231,OO0,-
200,
So far in 1917 the demand for life
Insurance has been beyond all prece-
aent Reports to The Insurance
Press from a large number Of COM
panies, including the largest corpo-
rations show increased writings Of
B096 per cent. during the first five
months Of the year. Reports from
The same companies show that the
new life insurance written in May,
1917, was $3.50 per cent. greater than
In May, 1916. If a ratio of gain of
81 ser cent. holds good during the
remaining 7 months Of the year as
NJ, average for all companies, the
Nil record for new business in the
Enited States will exceed $5,S95, 00O,-
BOO, incomparably the greatest gain
ever recorded.
The increasing demand for life in
surance is wholly normal and is based
upon the intelligence Of the public
life insurance statistician is author
NV for the statement that 81 per cent
of ~ estates left in the United States
consist solely OF life Insurance.
Heavy Increases in Current Writings.
Reports Of heavy increases have
been received by The Insurance Press