New-York tribune., 1918-01-10
Fire Insurance
InGreaterCity
To Cost More
Rates Raised 1OPer Cent to
Meet Higher Cost of
Doing Business

The New York Fire Insurance Ex-
change, representing every company
doing business in Greater New York,
voted yesterday to increase by 10 per
cent the premiums charged on all fire
insurance risks written on property
in this city. This increase, it was an
nounced after the meeting, is regard
ed as an "emergcncy war revenue tax"
to meet the extraordinary increase in
the costs of operations Of the insurance
companies and becomes operative i'm
mcdiately. 1t applies to all new busi-
ness and renewals Of expiring policies,
but is to remain in force only for the
period of the war.
Representatives Of the insurance
companies stated that the action taken
here is part of nation wide move
ment to assist these concerns to meet
the increased costs Of operating. In
November the 10 per cent increase on
premiums went into effect in upper
New York State New England, Penn
sylvania and certain of the states of
the Middle West. 1t is expected that
within the next few weeks the increase
will be made effective all over the
country.
Fire Protection Bill Large
Premiums paid to insurance COM
panies on fire risks written on prop
erty in the United States are estimated
to aggregate a total of 100000, SO
that 10 per cent fiat increase in the
rates all over the country, as is planned,
would add approximately S35,000,000 to
the bill paid for protection against loss
from fire.
Officials of the local Fire Insurance
Exchange said that the matter of in
creasing the rates had been brought to
the attention of State superintendent
of Insurance Phillips as a matter of
courtesy, although he has no jurisdic-
ton over rates beyond seeing that they
are not discriminatory. Superintend
cnt Phillips issued a statement last
night explanatory Of the action Of the
local exchange.
This action" he said, "is not local
in it's character, nor has it special ap-
plication to specific risks, but is gen.
eral as affecting all hazards, and is
made necessary for the stability of the
companies in the judgment of all fire
insurance interests by the existing
conditions, due to the war The in
crease is to remain in force for the
duration of the war only and is not to
be regarded as permanent.
"The Superintendent of Insurance
assumes no responsibility for the ac-
tion of the Fire Underwriters in ad-
vancing rates beyond recognition of
the fact that the severe fire losses, in
creased Federal tax burdens and de-
preciated security holdings make some
action advisable, if fire insurance in
IDENTITIES are to be maintained unm-
paired.
"'The independent inquiry into the
rating situation conducted by the In
surance Department is being contin-
ued and the action taken by the ex-
change has no relation to such inquiry.
1t may be added that appropriate rec
concentrations will be made at the con-
clusion of the investigation"
Reasons for Increased Rates
The head of one Of the large fire in
surance companies referred to the up
ward revision in the premium rate as
ian assessment for emergency pur-
poses brought about by the war; 1t
was asserted that the actual costs CT
operating the fire insurance business of
the country had Increased approx
mately 10 per cent by reason Of the in
creased salary scale, higher rental
charges, higher prices of supplies and
the large increase in taxes. 1t was
estimated that the war taxes levied by
the government alone would use up
nearly half cf the 10 per cent increase
in rates.
The report of the New York State
Superintendent Of Insurance for 1916
shows that the insurance premiums re-
celved for that year by joint stock
IRE companies ooerating in this STATE,
totallcd $99,9T2,5 ,566. The figures for