What Does Everyone Have to Say About "Managed Competition"?

What Does Everyone Have to Say About "Managed Competition"?

What Does Everyone Have to Say About "Managed Competition"?


For years, the state of Massachusetts controlled auto insurance carriers to produce higher revenues.  However, the system has changed directions, and state officials put a “managed competition” program into place in order to lower car insurance premiums and rates. This program has been in existence for about two years now, and has received both praise and criticism from the public.

Many advocates predict that the introduction of this new system will cause many new carriers to enter  the industry. Opponents believe that the “managed competition” system would create discrimination of select drivers.  They also believe that the cheaper premiums would effect the state insurance agents negatively by reducing their commission.  These mixed reviews have not fully happened because the  system is still quite young. 

There are currently a few companies that provide auto insurance for Massachusetts drivers, and are offering competitive and cheap premiums and rates for their consumers.  As the years go by with this new system, more opinions will form, and hopefully the auto insurance industry will be both beneficial for both consumers and state agents.

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