[Alberta's Child]

So why the horrific, unnecessary loss of life? Because it was cheaper to buy fire insurance policies than invest money on fire prevention.

This might have been the case at the time, but nowadays having a big insurance policy simply gives the insurance company an enormous incentive to be far more strict about building safety than even the local building inspector might be.

[Gvl_M3]

Here is an article from NFPA on the fire and what the building codes were at the time.

http://www.nfpa.org/itemdetailjournal.asp?categoryID=2157&itemID=50572

Regarding insurance companies, Factory Mutual Insurance has its own Approvals department that must approve all equipment being used for fire prevention. You can’t get their insurance unless you meet their requirements.

It and the UL is also being required by Authorities Having Jurisdiction when they do Certificate of Occupancy inspections. This is US and more and more worldwide.

http://www.fmglobal.com/page.aspx?id=50000000
http://www.ul.com/global/eng/pages/offerings/industries/buildingmaterials/fire/