H—l2

of large fires. This trend is well illustrated in the following table, which sets out the insured fire losses for the years 1918-44. It will be seen that following the First World War there was a high loss cycle extending over twelve years from 1921 to 1932, with a peak in 1928. The average annual cost to the insurance companies over this period was £997,000 and the national loss at least £1,125,000. There was a sharp drop in 1933, and the low loss cycle continued until 1945, with a small rise in 1940-41 and minima in 1937 and 1943. The average insured loss over this period was £539,000, and by a coincidence the twelve lean underwriting years were exactly balanced by twelve fat ones. The bulk of the loss in 1945 was not insured, but it is clear that the underwriters will again have been heavily hit in 1946.

Table 1. — Insured Fire Losses, 1918-44

- 4. History has a habit of repeating itself, and the importance of the above figures is that they establish that a high fire-loss cycle is possible, not to say probable, in the present post-war inflationary period. The increase in the number of property fires in urban areas referred to in last year's report is being maintained, and the 1945 and 1946 losses, although not conclusive, give some indication that the conditions operating in 1921-32 have developed earlier than after the First World War. Experience in this and in other countries has shown that fire losses can be reduced, if not controlled, by fire-prevention activities and by the maintenance of a high standard of efficiency in the Fire Service. The proposed Fire Service Bill, discussed in previous reports, is designed to provide more effective machinery than was available in the past for dealing with both these aspects. FIRES IN FIRE DISTRICTS 5. It will be seen from the statistical returns in Table 3 that a number of most unwelcome records have been established in fire districts during the year under review : (1) The total fire loss (£1,201,508) exceeded bv £500,000 the previous record loss in 1928-29. (2) The loss in large fires (£1,009,630) was almost double the loss in 1928-29, which was the previous record. (3) The wool-store fire in Wellington involved the largest insurance pay-out made on any single fire in New Zealand. This is understood to have been the second largest insured loss in the world during 1946. ■ (4) The pay-out for the year by the insurance companies—insured loss plus Fire Board levies —was £1,279,535, or only slightly less than the total premium income of £1,286,976.

2

Year. Loss. Year. Loss. Year. Loss. £(000) £(000) £(000) 1918 472 1927 1,211 1936 466 1919 391 1928 1,454 1937 463 1920 449 1929 1,094 1938 596 1921 739 1930 1,013 1939 587 1922 739 1931 1,149 1940 642 1923 790 1932 771 1941 715 1924 1,009 1933 573 1942 484 1925 862 1934 504 1943 426 192(5 1,129 1935 540 1944 478