Even Newfoundland is looking at public auto insurance

Private insurance squeeze play puts pressure on Premier Danny Williams

St. John's - Now even Danny Williams, the ultra pro-business premier of Newfoundland, is being forced to look seriously at the possibility of public auto insurance.

Several insurance companies have threatened to stop selling auto coverage in Newfoundland because of legislated rollbacks in premiums and the absence of a cap on personal injury claims. Others are threatening to halt all insurance activities in the province.

As a result, Williams, who made a fortune in the private sector before becoming premier last fall, finds himself in a direct confrontation with his private sector friends.

In fact, the premier has been forced to publicly accuse private insurers of overstating their problems, and to threaten them with the ultimate weapon - a public system.

"If the insurance companies don't want to do business in Newfoundland and Labrador, then perhaps the only alternative would be a government-run insurance company that deals with all forms of insurance," he says.

However, public auto insurance would only be considered by his government as a last resort, Williams stipulates.

Web posted by NUPGE: 6 June 2004

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