Moments in Time (April 01, 2004)

Insurance Accepts Challenge of Emergency at Rimouski

June 1, 1950

Unrelenting on that fateful Saturday afternoon [May 6], the west wind freshened, developed to gale force. At 4 p.m., howling in from the broad St. Lawrence, velocity was 65 to 75 m.p.h. At that moment a power line on the Sacre Coeur side of the Price Brothers lumber yard toppled under the pressure, cast writhing live wires across yard fences into serried ranks of lumber piles… With the wind in its teeth, fire stalked the streets during an interminable night, made into day by the lurid glare that arose from 319 houses, 20 stores, movie theatre, hotel, court house and jail, seminary and technical school…hospital, convent and an old folks’ home.

For the interim record, the following figures provide what is considered a fairly accurate picture of Canada’s second worst conflagration toll in history:

Insurance has already paid $10,000,000

Insurance may yet pay $7,000,000

Uninsured loss may be $8,000,000 – $25,000,000

Greatest Fire in Winnipeg History Gives Adjusters Gigantic Task Fire Losses May Exceed $3,000,000

July 1, 1954

The greatest fire in Winnipeg’s history, with losses that may exceed $3 million, has given insurance adjusters one of their biggest settlement tasks of all time, and, in western Canada, a task that is only second to that following the 1950 Red River flood which hit Winnipeg and its suburbs… more than 100 firms and individuals were assured tenants of the buildings that were destroyed.

And the fire has caused only part of the work. For while the fire raged throughout June 8 Winnipeg was the centre of a near-hurricane with winds of 72 m.p.h. and this caused about $100,000 damage to property, roofs being torn off, plate glass windows smashed, and a seaplane on a nearby lake sunk.

The fire originated in the seven storey Time Building in the heart of Winnipeg’s shopping district on the city’s main thoroughfare, Portage Ave.

Three Little Girls In Blew: Edna, Hazel and Carol Provided 1954 Ins. Headaches

May 1st, 1955

Three girls gave the insurance business its worst headaches during 1954, according to Stanley M. Elliott, vice-president and managing director of the Reliance Insurance Company of Canada.

At the company’s 35th annual meeting in Montreal, Mr. Elliott cited as “insurance event of the year” the hurricanes “Edna”, “Hazel” and “Carol”.

The hurricanes which affected the Maritimes, Quebec and Ontario caused losses in the United States, and Canada, estimated to exceed $300,000,000. The amount is said to be the largest payout of insurance funds in history, Mr. Elliott noted.

Preliminary Picture of 1956 Business Outlined by Dom. Superintendent

February 1, 1957

The net premiums written for automobile insurance have increased rapidly since the war to the point where they overtook fire insurance premiums in 1953 and now constitute the largest volume of any class of casualty insurance premiums.

However, the volume of automobile premiums flattened off in 1956 and indications point to little or no increase over the $180,000,000 written in 1955.

This is largely attributable to the rate reductions that became effective in 1954. The loss ratio, based upon premiums earned, was 53 per cent in 1954 but rose to 57 per cent in 1955 and it is evident that a further marked increase to approximately 65 per cent took place in 1956.

The inevitable result will be a higher general level of premium rates for 1957.

Direct Billing: What Agents Think A Canadian Underwriter Survey of Readers

November 15, 1959

Undoubtedly the most contentious subject in both agency and company ranks today is summed up by two words: “Direct Billing.”

In an effort to throw some light on this subject we surveyed 3,000 agents… We found that 64.72% of those who replied were against the introduction of direct billing plans, some vehemently so, largely on principle, some dispassionately because they could see no value or benefit in it for their own operations, either as a method of cutting costs or as a competitive tool against the direct writers.

One phrase cropped up time and time again in the replies of those who were against the system, and also in a good many of those who claimed to be undecided: “This type of billing will result in loss of personal contact with our clients.” …There is a deep suspicion on the part of a large percentage of those who replied that direct billing is the forerunner of direct writing… Agents are not sure that having the companies handle the billings would result in more efficiency. Some feel that the companies now make more than their share of errors…