New Brunswick Rejects Government-Run Insurance
New Brunswick Rejects Government-Run Insurance
The Dominion's CEO Applauds New Brunswick's Rejection of Government-Run Insurance
June 29, 2004
"We are very pleased that the Government of New Brunswick recognizes the benefits of choice and competition to consumers and has rejected government-run auto insurance", said George Cooke, President and Chief Executive Officer of The Dominion of Canada General Insurance Company. "I have said before that recommendations in The Select Committee's report were unworkable and would deliver fewer benefits to consumers at a greater cost and risk to New Brunswick taxpayers. It's personally gratifying that today the Premier has accepted these facts."
"I am also encouraged," continued Mr. Cooke, commenting on additional government announcements, "by the decision to proceed with a No Frills policy allowing consumers more choice about the coverage they require, beyond a base level acceptable to the population as a whole. It is a bold step toward giving consumers control over their insurance needs. Consumers will now be able to work with informed independent brokers to better match needs to purchases. Clearly, the "choice product" is a win for consumers and independent brokers in New Brunswick."
While the endorsement of private competition is encouraging, Mr. Cooke expressed concern about proposals for increased regulation and government interference. "Last year's reforms to the auto product and territorial rating, supported by both the Conservatives and Liberals are working for the people of New Brunswick. Insurers are responding and competition, not more regulation, is benefiting consumers. Prices are lower, product is available and the Facility Association is depopulating." Mr. Cooke said. "I urge government to ensure that any further regulatory changes do not impede competition but actually benefit consumers."
The Dominion is a 100% Canadian-owned company that has served consumers in New Brunswick since its founding by Sir John A. Macdonald in 1887.
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