Well, I sent you an update an hour too soon. It's just been announced that the local government authorities through whose areas the Pichi Richi railway runs have joined together - possibly with the regional economic development authority in there too - to pay for the increased premium.
I gather that immediately this has prompted a response from another - more struggling - operating heritage railway in that area complaining that the State government is supporting one entity but not the other. Now in fact no State funding is going into the arrangement. But it underlines the problem for governments: can they respond only to high profile cases without leaving themselves open to demands from everyone else facing rising insurance (which is every business in the world)?

Anyway, there's good news for an important rail operatiion here, at least for the next 12 months. Governments at all levels here are desperately trying to address ways and means of reducing the impact of insurance hikes,with the main initial focus on the medical system and to a lesser extent adventure tourism and things such as pony clubs. I didn't sense from your interchanges any similar sense of panic your way. But I might be wrong on that score.
Peter Cahalan

cahalan.peter@saugov.sa.gov.au

Since the pools of money owned by the insurance and reinsurance companies are invested in the markets, I am assuming the reason for the hikes is to try to maintain profitability while the markets are down. In the short term, they may get away with it for a while. In the long term, they will lose themselves customers and shrink their own businesses if they can't lower rates again within the next few months. Alternatively, other programs to manage risk which are marketably priced may be invented to fill that gap - public sector interference a possible example.

Generally, any time in the US a public solution is created to solve a social or economic problem a bureaucracy that costs more than a private sector solution is created, which then works hardest at perpetuating itself rather than solving the problem it was created for in the first place. The most notable example is probably the "temporary" institution of income tax which was to have been eliminated once the Spanish American war debt was paid off. I hope it is better down under.

Best Wishes from us on the opposite side of the planet, and if you find a solution, please don't keep it a secret.

Dave



irondave@bellsouth.net