HC Deb 14 February 1922 vol 150 cc855-6W

asked the Home Secretary if he can state the amount received in premiums by the insurance companies in respect of employers' liability insurance for the year 1920; the amount paid in compensation owing to accident or disability covered by such premiums, together with the respective percentages paid as compensation; the percentage cost of administration, with medical and legal expenses; and the percentage of profit available after such charges have been met?


I am informed that, according to the Returns furnished to the Board of Trade, which have not yet been published, the income of the companies for the year 1920 from premiums and interest on reserves was £9,047,559, Out of this, £2,980,755 was expended in payments under policies, and £1,532,847 was transferred to the reserves to meet unexpired risks and outstanding claims. These two amounts represent between 49 and 50 per cent. of the income. Payments under policies, however, include legal and medical expenses incurred in connection with claims, and the per- centage of income actually devoted to provision of compensation must be taken to be somewhat less than this. The cost of administration, including payments for commission but excluding legal and medical expenses, was 32.3 per cent., and the amount distributed as profits was 18.44 per cent.