A Case Study in Private v. Public Enterprise: The Manitoba Experience with Automobile Insurance

This study is designed to serve as a policy guide for those charged with decisions involving changes in automobile accident reparations systems. Performance of a monopoly government insurer, the Manitoba Public Insurance Corporation, is compared with that of private insurers operating in Alberta. Three criteria important to the insuring public-product, service, and price-are used to evaluate insurer performance. The conclusions are that private insurers appear clearly to have the advantage in product and service but that the government insurer has the advantage in price. The price advantage is attributable in part to charging inadequate premiums, thus creating deficits that are offset by government subsidies.