Insurance agents in Massachusetts support the state’s move to managed competition in private passenger auto insurance but oppose insurers’ use of credit scoring in rating or underwriting.
In an online Insurance Journal poll completed by 76 Massachusetts agents, 56% said they support the move from fix-and-establish auto rates to a managed competition format, while 38.7% said they oppose it and 5.3% are undecided or have no opinion.
“It’s about time that we are given the same opportunities to secure business that they have in other states,” noted one pro-managed competition agent.
The current regulations for managed competition ban the use of credit scores by insurers. A majority of agents agree with this prohibition in rating (77.3%) as well as in underwriting (65.8%).
“Think competition is OK. Think credit scoring or socio-economic factors are unfair to good drivers,” wrote one agent who captured the majority’s viewpoint.
Not all agree that the change is necessary.
“Auto rates were doing just fine under the present system. Premiums have been coming down. As they say, ‘if it isn’t broke, don’t fix it,'” commented one agent opposed to the switch.
For a complete report on agents’ views of the change to managed competition, see the Dec. 3 issue of Insurance Journal East magazine.
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