MASSACHUSETTS RECOMMENDS 1% MOTOR RATE RISE

The Massachusetts State Rating Bureau, the consumer arm of the Division of Insurance, has recommended that motor insurance rates go up by an average of 1% in 2005. The industry had requested a 9.2% increase, while the attorney general had asked for a 6.2% cut. SRB director Kevin Beagan said that his bureau’s recommendation had been based on 2003 data. Bodily injury and personal injury claims had been basically flat compared with 2002, but claims for property damage had risen by 6.3%. There had also been a 14% increase in glass claims, Mr Beagan said. The commissioner will announce a final decision near or on December 15, after the hearings continue with questioning of actuarial and financial experts.