Comparison of insurance cost between areas disclosed that the 

 rise in cost was greater in Nev; England and less pronounced in the 

 Gulf Area and California. But in terms of premium per hundred 

 dollars of insurance, the average insurance cost during the five- 

 year period was higher in California than in the other areas, with 

 the Gulf Area probably occupying the second position, followed 

 closely by New England. 



2. The cost of protection and indemnity insurance . During 

 1950-5^, average gross premium per policy increased from $1,425 to 

 $2, 5^3 in New England, from $1+36 to $485 in the Gulf Area, and from 

 $378 to $717 in California. The cost of insurance, in terms of cov- 

 erage, remained eilmost the same in New England with some contractual 

 provisions increasing and others decreasing the extent of insurance 

 protection. The Gulf Area had similar experience on coverage, 

 although the small size of the sample renders these findings less 

 reliable. Coverage in California seems to have declined, indicat- 

 ing a rise in the cost of insurance . 



Comparison of insurance cost between the areas disclosed that 

 California experienced the greatest percentage increase, with New 

 England occupying second place. In absolute terms, protection and 

 indemnity insurance seems to be costlier with regard to gross pre- 

 mium and amoxint of insurance in New England than elsewhere, although 

 some other contractual provisions restricting coverage in the Gulf 

 Area and Csilifomia may offset these cost differentials. 



3. Loss experience of insurers. According to our best esti- 

 mates, during the period 1950-54 the paid losses and loss expense 

 for hull insurance averaged from 71 to 76 percent of earned pre- 

 miums in New England, 74 to 79 percent in the Gulf Area and 49 to 



54 percent in California. This means that, on the average, insurers 

 in the first two areas paid more in losses and expenses than the 

 amount of their earned premium available for that purpose. In con- 

 trast, insurers in California, on the average, were able to pay 

 losses and expenses and realize some gains. This over-all experi- 

 ence, however, conceals the fact that in all three areas some in- 

 surers sustained heavy losses and ceased underwriting commercial 

 fishing vessels; others broke even, and a few realized some profits. 



Insurers underwriting vessels for protection and indemnity 

 insurance may have sustained heavy losses in New England and 

 relatively heavier losses in California since, according to our 

 best estimates, paid losses and loss expense during 1950-54 

 averaged from 89 to 94 percent of earned premiums in New England 

 and from 154 to 159 percent in California. Loss experience in 

 the Gulf Area vms very satisfactoiy, according to our sample 

 findings and insurers' reports. 



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