Essay about Insurance and Privatization Worksafebc

Submitted By chengy007
Words: 1285
Pages: 6

Privatization is a hot topic of discussion worldwide. It is usually driven by the political agenda and it is usually viewed as the root for all sorts of problems. According to the dictionary privatization is the transfer of ownership and government functions from public to private bodies, which may consist of voluntary organizations and for-profit and not-for-profit organizations. The public can be the State or Public but not regional and local government or public corporations. Private is the non-profit, community based, religious, charitable or NGOs or private can be for profit such as small businesses and large corporations. In my opinion I think privatization of WorkSafeBC is good move as long as Workers' compensation doesn’t become a private gain.

Reasons for Privatization
Many reasons may lead to privatization of WorkSafeBC these could be the current welfare state of WorkSafeBC whether its operating efficiently or not, or whether it is delivering good service and it could be due to bad experiences by employees or employers. Another reason for privatization WorkSafeBC is comparing some institutions that have turned private and turned very efficient and successful than before. Other reasons for privatization would dissatisfaction with poorly managed public services, people’s rights of choice, or diversity, quality of services and better service and competition. According to history government run agencies have a reputation of poor customer service in terms of insurance and poor claim management example is our ICBC system in British Columbia. This is maybe to the fact the government agencies are usually underfunded since they receive a budget each year. Private insurance companies use aggressive investment approaches to invest their profits which makes them have more money than the government run insurances. Government run services usually don’t have competition so they do not have a need to offer competitive customer service. An insurer can’t compare customer service since the government run insurance is their only option for workers compensation coverage. Government run insurance is usually driven less by the need to show a profit, also are very effective at preventing losses, improving safety at workplaces and profits from insurances are contribute to economic development provinces.

Pros of Privatizing

public compensation systems in Canada and the USA and see they are more efficient and effective in providing benefits to injured, diseased or disabled workers. According to studies done in the States the Public compensation providers experience higher losses in terms of operating, but they are able offset these losses with lower expenses and better injury prevention efforts and programs. Since the government is not a businesses and do not operate on business principles, profits motives are reduced, in the business world as the company profits better and cheaper services are offered which will be achieved by privatization of WorkSafeBC. Privatization of WorkSafeBC will lead to increased employment opportunities, greater revenues for the government, and lower prices and better value-for-money for consumers. Example is the car insurance system is cheaper in Alberta where its private compared to ICBC, which is government operated and expensive. Public or government compensation system does not make the system efficient an example is Qantas and Commonwealth Bank in each case the company flourished after being removed from the government ownership. Privatization of WorkSafeBC will mean improved services, employing more people, increasing profits for shareholders and investing in the future thereby providing better workplace injury insurance. Studies by the U.S. insurance industry found that workers compensation is the most profitable business, therefore private companies need to be involved and maximize profits and make the services cheaper, compensating workers more money and better rather than letting