The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-08-29
HIGHER INSURANCE. RATES.

federal taxation made necessary on
account of war; higher cost of opera
ton and unprecedented losses by fire
are the causes given by the fire in
surarce companies Of the United
States for the recent advance i'm
rates on certain classes of property
which have not only proven motor
iously Improbable but have been di-
rectly responsible for widespread de-
struction and damage.
According to insurance managers
be general throughout the United
States. The official statement of the
executive committee of the Southeast
ern Underwriters Association at At
lanta states that the advance i'm the
South will apply only to frame shingle
roof dwellings, churches, schools and
greatest number of fires and con-
fiagrations in this section have result
ed from this class of property. In
the last year and a-half four confla-
garations have resulted in insurance
losses of $4,000, 900, including the
great fires in Augusta, Ca, Nashville.
Tenn, and Paris, Texas in March
1916, and in Atlanta, Ca, May 21,
1917. The official statement of the
executive committee of the South
eastern Underwriters Association fol-
lows. in part:
Notwithstanding that practically
every other enterprise has been in
creasing prices for some time, fire
insurance companies are among the
last to make any advance. The pres
ent increase 4 rates has been made
necessary in justice to policyholders
and to avoid the weakening of any
required reserves and surplus accounts
, at. "a time when failure of fire in
demnity and protection would be a
, national calamity. Insurance compa-
! nies are willing to pay all necessary
5 federal taxes, recognizing the war
, time necessity. AT the same time it
| is pointed out that in times of war
as we'll as peace, resources must be
conserved and surplus and reserves
maintained for conflagrations and
heavy losses that are constantly ac-
cruing. Solvency ,must be retained
, in order to continue assistance to
every industry that is dependent up
on fire insurance companies for pro-
lection.
THE advance is not expected to
offset the increased cost of operation.
1t will not yield upon the aggregate
more than five per cent. 1t wilF not
be confined to any state or city, but
will be effective throughout the Unit
ed States 1t is held by the compa-
nies that it would be unjust to off
set heavy losses by placing an addi-
tiOnal burden upon classes of proper
|ty not so hazardous. 1t has been the
final decision to place the advances
upon classes which have caused the
majority of losses. The matter was
thoroughly discussed with officials of
the local agents associations of the
various states and their hearty COOP
Grafton was pledged
i Sworn figures of the different
State insurance departments of the
South show that companies in the
last five years have paid out i'm loss
es and expenses, $104 to every 500
received in premiums. Circumstances
which have affected other lines of
business, have made their impress
sion upon fire insurance companies
State and national taxes have been
greatly increased. Differences in tax
alton alone will represent more than
twice the average annual profits of
companies. Increased cost of sup
plies and employment, advance i'm
material and labor to rebuild or re-
place and large losses through en-
Vironments due to war sympathy will
continue to have their effects upon
the loss ratio Of the country.
Loyalty of fire insurance compa-
nies to the United States and the de-
sire to be of service in the present
crisis are aptly proven by the fact
that the government is now using a
vast army of trained insurance engi-
neers and experts to assist in the con-
servation of food products and man.
ufacturics, the labor being given free
Of charge with every item of expense
borne by the fire insurance compa-
nies.