Evening star., 1929-12-18
INSURANCE TOTAL
MOUNTS STEADILY
Investment of Premiums Is
Aid to Industry of the
Nation.

BY J. C. ROYLE.
Special Dispatch to The star.
NEW YORK, December 1a.-Safety
first is more than a mere motto to the
people Of the United States. Protec-
ton in the next year is involving the ex-
penditure Of more than $500, ,0OO, 900.
Business is insured against future dis
aster to the extent Of 500, O,0OO, ,oO0, 900,
according to authentic sources.
In other words, If every insured life
were lost and If every insured building
burned to the ground, the American
people would be reimbursed to the ex-
tent of 100000, 100000. Among the
nations of the world America is credited
with recklessness and lack Of business
caution, yet this nation will spend more
than per cent OF its national annual
income for protection against the future.
Group Insurance.
OF the huge sum involved in this pro-
lection, life insurance accounts for
about 500, 900 900 900 and premiums on
life insurance policies now in existence
year. other forms Of insurance, includ-
ing flre, theft. casualty and marine
policies, afford protection to the extent
of SAC, ,0O0, 900 900 provided at the ex-
penditure of 5000, ,000,0 900 a year. Busi-
ness in the last year has run at the rate
of about per cent in excess of new
business in life insurance written in
1928.
The greatest factor in this improve
hA fFanFAaRA
number of group insurance policies.
One concern alone has $37, 500, 900 COW
ering the lives of $4,000, 900 wage earn
ers and their families. 1t is expected
by life insurance concerns that the
per cent increase shown in 1929 Will
be continued in 1880.
The gain in other forms Of inSur-
ance has not been so marked, although
it has proceeded at an even and healthy
rate. It Is believed that the building
programs, which for the last three years
have exceeded $4,000, 100000 annually,
have involved the placing Of a tre-
mendous amount of new fire insurance
business. It Is true that In practically
every case the new structures have
either been insured with existing COM
panieS or have been protected by the
owners, who have virtually written their
own insurance.
Fire Rates Decreased.
While the total Of protection against
fire has increased in dollar values, the
rate accruing to the FIRE insurance com"
panieS has shown q corresponding de-
crease. The fire insurance companies
have obtained almost as much prodt
insuring q 6-story building of the older
type as they now get from the insuring
of 3O-story building on the same site
Of the modern type.
The placing Of all forms of insurance
has of necessity made available for IN
vestment q huge sum In the last year.
The distribution of these funds for
safekeeptng by the insurance companies
has become one Of the greatest factors
in the world of finance. To all intentS
and purposes they are the largest in
vestment trusts now in existence, Tor
under Federal and State regulation
and investments in almost exactly the
same way that the modern investment
trust operates, balancing one type OF
investment with another, so as not TO
have "all the eggs in one basket.
The life insurance companies OF the
United States expect to place in IN
vestments approximately $500, ,oO0, 900
within the next six months. The in
Vestments for the year Of 1880 viii
sum. about l,75o, ,000. 900.
The group Of hre insurance COM
panies which accounts for the larger
part Of the business probably will have
more than $500, 900 900 to invest in
the first half of 1880. 1t is worthy Of
notice that default of premiums has
been remarkable for its absence during
the last two months, q period when
decided uncertainty was felt by some
as to the future course Of business.
Collections Excellent.
Premium collections in general are
excellent. Among the insurance COM
panies, however, competition Is ex-
tremely keen and insurance men are
likely to have to do more LEG work" to
pile up the same volume Of business
OF insurance from an investment and
financial standpoint has been decidedly
augmented aS a result Of the recent up
heaval In the stock market. Insurance
companies are one of the main supports
of the State, county and municipal
financing done throughout the United
States.
The volume of this financing is likely
to be increased tremendously in the
next three months, owing to the
extraordinary programs for public works
construction. One company alone has
outstanding loans totaling 1851, $40 900.
covered by 30,5O4 mortgages on real
estate. These loans are distributed
throughout nearly 800 cities in 80 States.
These figures give some idea of the wide
distribution of insurance funds through
out the Nation and their importance in
the programs now being carried out for
business and industrial improvement.
Copyright, ls2s)