Consumer mindsets have not changed here in Massachusetts especially in the auto insurance sector. Consumers seem to prefer the old players in the auto insurance industry despite the sweeping changes that were brought about by the state’s insurance commissioner in April 2008. The main aim was to relax the rules and regulations in the market in order to make Massachusetts like the rest of the states. The major players like Geico and Progressive were to set up shop with their mascots and come up with much more attractive offers for the consumers.
Although the companies did turn up along with some lesser known insurers and Allstate, consumers in the Bay State seem to be uncomfortable with any sort of change. The state Division of Insurance does not have the information as to how many customers have shown preferences to a new insurer, the market share of each insurer in the state is closely monitored. Going by these figures, the old players still continue to rule the roost since the last three years.
As of December 31, Commerce Insurance seems to be the undisputed leader with around 28% of the market share despite the other competitors who managed to make some progress. As a result of the deregulation Commerce got 32% of the market share.
Even the ranking order has not changed much in the last three years with respect to the five insurers. All of them are companies that are based in Massachusetts although Commerce is presently owned by a Spanish firm. Safety comes in second with 11% of the market share. Its second position is threatened Liberty. Liberty has gone past Arbella into third place. They are followed by Plymouth Rock and Metlife.
Despite this, it is not as if the new players did not get any customers. Progressive has made a breakthrough in the top 10 with 3.4% market share by the end of December. Geico made a slow progress but it now with a 2% market share. So in totality the new insurers have managed to take away around 8% of the share in the auto insurance market.
Joe Murphy, State’s auto insurance commissioner seems to be a little disappointed as it was his predecessor Nonnie Burnes who shook up the auto insurance sector by throwing it open to competition. He feels that consumers are not shopping around enough despite the wide range of options that they have now.
