PCI Welcomes Mass. Auto Reform Efforts

The Property Casualty Insurers Association of America (PCI) welcomed Thursday’s announcement by Massachusetts Gov. Mitt Romney of the creation of a task force consisting of high-ranking members of the Attorney General’s office, the Legislature and the administration. This unprecedented bipartisan task force is to immediately begin work on a major overhaul of Massachusetts’ private passenger auto insurance system.

“We have been working closely with all parties leading up to today’s announcement and our members strongly support the reform efforts that have been proposed. We look forward to working with the task force and the administration in an effort to develop and implement these changes according to the aggressive timetable that has been established,” said Frank O’Brien, PCI vice president and New England regional manager.

“We are also pleased with Commissioner Bowler’s efforts to act quickly to reform the Commonwealth Auto Reinsurers (CAR) assigned risk plan. As the Tillinghast study that was released today clearly shows, the state’s residual market needs to be fixed sooner rather than later.

“Reforming CAR and then changing the commonwealth’s archaic insurance regulatory process will open the market to competition and encourage insurers to take another look at doing business here. More competition and more insurers will be a welcome change for consumers, the majority of whom stand to benefit most from the announcements made today.”