April marked the fourth anniversary of the implementation of Managed Competition in the Commonwealth. The Boston Globe took a look at auto insurance rates this week and found rates are on the rise. The Globe says that after analyzing data provided by the MAIA, it found that major insurers have raised rates by a median of 4.3 percent this year. This comes after a median increase of 4.5 percent last year.
The Attorney General’s office who has been monitoring the situation, sent a letter to the Commissioner of Insurance where it said that “The substantial increase in rates over the past two years is troubling.”
In response Commissioner Murphy said, “Prior to managed competition, buying your auto insurance in Massachusetts was like when Henry Ford unveiled the Model T. You could have any color you wanted as long as it was black.’’
Independent agents Ray Gallant and Bob Carreiro were also interviewed for the article. Mr. Gallant, who is the MAIA Chairman said that most agents knew rates were going to go back up because it seemed unrealistic that insurance company’s could make any money with the lower rates.
Other articles from Agency Checklists that you might be interested in….