Auto Writers Play Rough After Reform in Massachusetts

OLDWICK, N.J., Apr 03, 2009 (BUSINESS WIRE) -- There have been some bumps in the road but the overall journey in Massachusetts from an automobile insurance rate system controlled by the state to a competitive one has gone rather smoothly, according to an article in BestWeek U.S./Canada. "I've been very pleased," Insurance Commissioner Nonnie Burnes told BestWeek. "This has taken a huge amount of work, but we believed it was very important to develop a healthy, vibrant market."

The decision by Novae Group plc to seek a merger with fellow Lloyd's insurer Chaucer Holdings plc made a lot of sense to Matthew Fosh, Novae's chief executive, according to BestWeek Europe. But the deal did not go through, and that failure says much about the complex pushes and pulls exerted by the investment markets.

Also, in BestWeek U.S./Canada, the use of contaminated drywall imported from China is opening the type of rolling liability issue that will likely lead to years of litigation about insurance coverage. An organization representing homebuilders said several lawsuits have already been filed over the drywall, which emits vapors of sulphur compounds that corrode metal, such as copper pipe, wiring and air-conditioning coils.

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Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.