The Massachusetts Automobile Insurance
March 15, 2007
Office of Consumer Affairs and Business Regulation
Governor Deval Patrick convened the Automobile Insurance Study Group (“Study
Group” or “members”) on January 26, 2007, and instructed the Group to study the system
of Massachusetts private passenger automobile insurance and make a report with
recommendations for improvement by March 15, 2007. Governor Patrick directed the
Study Group to identify opportunities within the existing system to increase competition
and reduce costs while maintaining equity.
The Automobile Insurance Study Group met on seven occasions, for
approximately three hours on each occasion, between February 1 and March 13, 2007.
The Study Group members consisted of Chair Daniel Crane, Director of the Office of
Consumer Affairs and Business Regulation Deirdre Cummings, Paul Doherty, Paula
Gold, Patrick Lee, Joseph Meador and Susan Scott1.
1 See Appendix A
The Study Group makes the following recommendations:
1. The Commissioner of Insurance should examine alternatives to move towards
competitive rating using flex-bands2 while maintaining affordability for all
drivers, minimizing disruption to the market and maintaining consumer
protections. This may include, but is not limited to, allowing price flexibility for
all coverages or continuing with a “fixed and established” system for compulsory
coverages while allowing price flexibility in optional coverages.
2. Existing rate subsidies for urban and inexperienced drivers should be
3. Rating factors should be limited to the current rating factors: years of driving
experience, number and severity of at-fault accidents, traffic violations and
4. The Commissioner should delay implementing any assigned risk plan until able
to meaningfully evaluate the results of the 2006 redistribution of exclusive