REPORT OF TIHE COMMISSIONER OF INSURANCE.


9


Elspeciiflly in the nmitual comnpanies, the. expenditures for inspec-
tions and engineering serviee often amounts to more than thle
losses, and in many cases. the property owner takes the insur-
ance largely to secure the inspection service. So highly is it re-
garded that the insured eheerftilly complies with the most rigor-
ous requirements for the highest standard in construction, equip-
ment. proteetion, anid maintenancee. It pays. The resulting reite,
including as it does ai very considerable expense for efficient in-
spection service, is so low as to be almost nominal.
FIRE INSIURAUNCLE RATES.
in any event, the increasing interest in the subject of fire pre-
vention is sure to bring about a greater interest in the rates
charged to the insured and in the methods by which such rates
are nadfle. With the geineral uise of schedule rating, and the in-
evitable growth of co-oeration between the companies, with or
without authority of law, the companies will surely be expeeted
more and more to be able to justify the rates charged. The data
now available for this purpose is neither complete nor satisfa.c-
tory. The attitude of indifference, or even of opposition.   -
sumed by many companies toward. attempts to secure such data,
leads to a public suspicion that companies desire a continuance
of the present conditions. Whether justified or not it does lead to'
attempts at enforced reductions in rates, the justice of which can
neither be successfully established or controverted.
OPE(N DFALTNG WITH FTPBLIC REQUIRED.
Tbe sooner it is rpcognized in insurance, the sa'me as in other
forms of business of a public nature, that the; utmost openness
and publicity based upon definite data are required, the! betf"r
it will be for all concerned. The states or communities makng in-
telligent efforts for the reduction of the fire loss will neces-arilv
inquire into the extent to which this reduction is reflected in the
insurance rates, and intelligent co-operation by the companies
preferably in some national way, will in the end be most economi-
cal and secure the be-st results,