Even Newfoundland is looking at public auto insurance
insurance squeeze play puts pressure on Premier Danny Williams
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