The Conservative government’s budget bill is facing pushback from the Tory-dominated Senate over concerns it will reshape Canada’s insurance industry and deliver a potential “jackpot” to a relatively small group of people.
Conservative Diane Bellemare, a career economist from Quebec, is urging her fellow senators to take a closer look at the implications of the bill’s changes to Canada’s insurance sector.
http://www.theglobeandmail.com/news/politics/insurance-changes-raise-red-flags-in-senate/article18996451/
She warns a section allowing mutual property and casualty insurance companies to go public – or demutualize – creates an incentive for small numbers of people to profit from the value of a company that has been built up collectively over decades.
The bill’s largely overlooked provision was inspired by the plans of a single company: Economical Mutual Insurance. The future of its $1.6-billion surplus is riding on the outcome of the debate.
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