New-York tribune., 1919-12-19
Robbery Wave
To Raise Cost
OF Insurance
Underwriters May Decide to
Increase Rate 25 Per
Cent or Else Adopt Co.
insurance System To-day

Burglary insurance underwriters
will decide to-day whether, because
of the prevalence of crime, to in
crease rates 25 per cent on residen-
tlal policies or ADOPT the co-insurance
system. Either will add to the cost
of burglary insurance for household
ers.
The co-insurance system virtually is
certain to be applied to policies Gov
erng. furs, silks, feathers and similar
merchandise. Extension of the de-
tective bureaus of the companies to
prevent and detect thefts of this kind
Of goods IN greater New York and
counties, New Jersey, is probable as
result of the failure of the police to
suppress them.
Ihe Burglary Insurance Underwrit-
ors Association, representing thirty
two companies, discussed the proposals
OF the residence and mercantile COM
mittees at the Hotel McAlpin yester-
day. The association will reconvene
his morning and determine its course
Yesterdays session chiefly was de-
voted to debating the two suggestions
to recoup losses on residential poll
ces. Criticism of police methods that
nave necessary All increase IN
the cost Of insurance was almost unani-
nous.
Liquor Insurance Discussed
The residence committee also rec
commended that alcoholic liquors be
henceforth insured for only 20 per cent
of their declared value. Policy-ho old
ers who stocked their cellars in antici-
patton of the "dry" regime, it is said
recently have manifested proclivitv
20 claim several times the real value
Of whisky and wine that has been
stolen. This, 100, will be decided on
at to-day's meeting.
While the proposed increase IN mer-
camille burglary insurance would be
confined to New York City and the
northern New Jersey counties, that in
residential burglary protection would
be country wide, with the exception OF
the Connecticut and Chicago districts
and Kansas City. Rates are already
satisfactorily high in those localities.
The committees report declares that
'the loss ratio as well as the average
loss on residence business has greatly
increased" since 1915. In that year the
average loss was $685. In 1916 it
was $lo5.A5, i'll 1917 $l6S.77, in 1918
$t96.10, and for the first nine months
of 1919 it was S2O3l9. The 1919 aver
age loss IS Al per cent higher than that
OF 1915, although, except in few
cities, the residence rates have been in
creased only 10 per cent since 1918
The committee unanimously urged a
flat increase of 25 per cent ,u resi-
dence rutes.
CO-insurance System Outlined
The reinsurance system sueges ted
for mercantile business would have the
effect OF compelling policy holders to
insure their merchandise for 81; least
80 per cent Of its full value. If in
sured for less than this, indemnities
paid would be 10 the value Of the stolen
property III the ratio of the amount OF
she policy to the total value of the in
sured property.
ii similar plan. in lieu of hat in
crease OF rates. is applied to resiGen-
tial insurance, the companies will get
the benefit of the increased insurance
amounts and the policy holders will
be accorded increased protection.
The companies private detective
services, which. it is predicted, may be
extended 10 handle factory theft in
vestigations. now limit their activities
10 bond and security robberles in the
financial district. The underwriters. il
was said, are greatly impressed Wit,
the necessity OF doing Something to
offset the seeming impotence OF the
police to check thefts Of hundreds OF
thousands OF dollars worth of silks and
furs