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Show Accident Claims Force fluto Insurance Up "Motorists in the eight western states, along with most other states, face higher charges for . automobile liability insurance in 1953." This view of the outlook for automobile insurance rates was given to the public today by the National Bureau of Casualty Underwriters, Un-derwriters, a rating organization with a membership of 122 stock companies writing casualty insurance. insur-ance. "The outlook is based not on opinion, but on stern economic facts," the Bureau stated. "Reluctant "Reluc-tant as the insurance carriers are to seek higher rates, there is no alternative. As inflationary pressures pres-sures continue to push up the costs of settling accident claims incurred . by insured motirists, rate revisions during 1958 will un-undoubtedly un-undoubtedly involve increased. In many states, rate increases have already been approved by supervisory super-visory authorities that will affect af-fect a large part of the volume of business written in 1958. Underwriting Losses Severe Mexico 33.3 years and of India 28.6. The difference lies chiefly in the health facilities available, as well as such factors as better nutrition and living conditions. Answer to Question No. 3: 3. It is a test by a doctor to determine if a person is allergic (sensitive) to various substances and to what extent. A small piece of surgical cotton to which . the substance has been applied is attached to the patient with a pad held in place by an adhesive "The rise in automobile insurance insur-ance rates will not be halted until the present trend of average claim costs and claim frequency is reversed. re-versed. Motorists cannot exercise any control over the inflationary forces that have gripped our economy. eco-nomy. But motorists collectively have it within their power to control con-trol the number and severity of automobile accidents; unfortun-i ately, it is a power that has largely large-ly gone unused. Postwar Experience Adverse "We have had an inflationary economy ever since the beginning of World War II. First it was a creeping inflation! Then after the Korean outbreak it became a galloping gal-loping inflation. More recently its pace changed; again, it is the creeping type." Contrary to general belief, automobile auto-mobile liability insurance has been underwritten at a loss by member companies of the National Nat-ional Bureau of Casualty" Underwriters Under-writers in the aggregate since the end of" World War II, the Bureau said. "During the postwar period of 11 years from 1946 to 1956, inclusive, an aggregate underwriting loss of 3.9 per cent on automobile bodily injury and property damage liability lia-bility combined," the Bureau stated. sta-ted. "This means that automobile liability claim costs and expenses amounted to $103.90 for every $100 of -premiums earned, or an aggregate aggre-gate underwtiting loss of almost $250,000,000 over the 11-year period. per-iod. Losses Outweigh Gains "Because automobile liability represents a large part of the casualty cas-ualty insurance premium volume, the aggregate underwriting loss for that line of insurance outweighed out-weighed over the 11-year postwar period the aggregate underwriting gains from the four other major Bureau lines general liability, burglary, glass, and boiler and machinery insurance. As a result there was an average underwriting underwrit-ing loss of 2.1 per cent or $2.10 for every $100 of premiums earned earn-ed for all five Bureau lines combined. com-bined. "While moderate underwriting profits were realized on automo- i 1 ! Answer to Question No. 1: 1. Children as young as 16 nonths are sometimes fitted for lasses. The glasses, equipped vith unbreakable lenses, must e checked frequently to se'e that he frames are not bent and that hey are large enough to allow 'or the child's growth. Answer to Question No. 2: 2. It depends on where they live. According to statistics published pub-lished by the United Nations, persons born in the United States, Canada or France have the longest life expectancy (68.3 ears, 67.2 and 65.3), whereas ihe inhabitants of Egypt can nly anticipate 38.6 years, of strip. The appearance of the skin is observed after removal of the patch and the extent of allergy is judged by the doctor. (Copyright 1950 by Health Information Informa-tion Foundation) bile liability insurance for three of the postwar years there were eight years of underwriting losses, the worst of which was the year 1946 when the aggregate loss was 26.2 per cent or $26.20 or everyf $100 of premiums earned." "During 1956 member compa-nies compa-nies of the Bureau , suffered a countrywide underwriting loss of 7.9 per cent on automobile liability liabi-lity insurance. This means that automobile liability claim costs and expenses amounted to $107.90 for every $100 of premiums earned, earn-ed, or an aggregate underwriting loss of more than -$64,000,000. Their automobile physical damage insurance business collision, comprehensive, fire, theft, etc. was also unprofitable. Other stock companies and mutual companies also sustained serious underwriting underwrit-ing losses during 1956. Experience in the western states is no better than the national trend, with California Cali-fornia particularly bad. "Reports for the first six months of this year indicate the prospect of an even worse underwriting loss situation for the year 1957. The underwriting loss, for example, lor all lines for one company, jumped from $528,000 in the first half of 1956 to $6,635,000 in the comparable period of. 1957; for an-' other from $2,839,000 to $11,800,000 for another from $154,000 to $5,-379,000; $5,-379,000; and for still another from $3,50,000. to $6,881,000. More and Costlier Claims "Inflation has forced up average aver-age claim costs for both bodily injury and property damage liability. lia-bility. In addition, the adverse effect ef-fect of inflation on property damage dam-age claims has been aggravated by continually climbing repair costs resulting from car design, the new wraparound windshields, for example. "During the postwar period from 1946 through 1956, claim costs for both bodily injury and property damage increased on the average more than six per cent a year, with the result that bodily injury claims settled in 1956 on a countrywide basis were 82 per cent above the 1946 level and the property damage claims were 88j per cent higher. And there is no evidence of any apparent leveling! off of costs in the foreseeable future. fu-ture. "In addition the upward trend in average claim costs the companies com-panies have been confronted since the latter part of 1955 with the adverse effect of increasing claim frequency, that is, the number j of claims per 100 insured cars.i 1 |