In New Zealand all property insured against fire is deemed to be insured to the extent of the indemnity value against earthquake and war damage. Premiums at the rate of 1s. for each £100 of insurance cover are collected by the insurance companies and, less 2½ per cent commission, are paid into the Earthquake and War Damage Fund. This Fund, which is another particularly interesting feature of New Zealand insurance, was set up under legislation enacted in 1944. At 31 March 1961 the Fund amounted to £24.8 million, which included over £500,000 in a special Disaster Fund. Assets at that date comprised mainly New Zealand Government securities (£18.4 million) and British Government securities held in London (£5.5 million). The Disaster Fund was established over 10 years ago to provide some protection to the insured against storm and flood losses. Disaster damage also includes volcanic eruption and, since 1954, the Commission has authority to accept voluntary insurance against landslip.

The total amount at risk under earthquake and war damage insurance is in excess of £3,700 million. During the year ended 31 March 1961, 228 claims were lodged as compared with 624 and 110 in the two previous years, while claims under storm and flood insurance numbered 445. This was appreciably less than in the two preceding years. No claims have been received in respect of volcanic eruption and it is fervently to be hoped that this state of affairs will continue.

Although the statistics in this section cover the periods 1959–60 or 1960–61, the major picture presented is still generally accurate. Growth has, of course, taken place. One change worthy of comment is the slightly different pattern of life assurance offices' assets. By 1962–63 there had been a fall in the percentages held in Government and local authority securities, while company shares and debentures had increased to be about 10 per cent of total assets, which in this period totalled £329.7 million. Assets of the accident insurance companies rose to £106.1 million in the same period.

by Robert John Familton, M.COM., Economist, Reserve Bank, Wellington.

• Insurance, Raynes, H. E. (1960)
• Bold Century, New Zealand Insurance Co. Ltd. (1959)
• The Australian Insurance and Banking Record (monthly).