"I maintain that there is very little in this legislation that will benefit insurance consumers in this province," said Parsons. "The introduction of a deductible will not allow consumers to achieve the savings they were promised last year. While consumers were expecting 20-30% savings on their insurance bills, this new legislation will result in no long-term savings, and short-term savings far less than previously expected.

"The maximum savings for most consumers in this legislation is nine per cent. Furthermore, lawyers have already announced their intention to inflate insurance claims, causing rates to further escalate following the one year rate freeze. This will ensure that insurance consumers do not benefit from lower rates and stability in the insurance industry will decline over time."

Parsons is also worried about the negative economic impact of this legislation as a result of the turmoil that will be created in the insurance industry. Several companies have decided to pull out of the province, leaving many brokers without insurance to sell. There are currently more than 1,000 people directly employed in the insurance industry throughout the province who are concerned for their jobs.

"If insurance companies pull out of this province, local employees will lose their jobs and there will be less competition in the insurance industry. This could ultimately mean higher rates for the consumer. As competition declines, companies may charge higher rates. One year from now, we may actually have an insurance industry that employs fewer Newfoundlanders and Labradorians, while charging higher rates to consumers. Is this the sign of a well-thought out insurance plan?"