Plymouth Rock Issues January Renewals With Actual Rates, Eliminates Provisional Policies for Mass. Drivers for First Time in Years

    BOSTON--Dec. 17, 2001--For the first time in many years some Massachusetts drivers whose auto insurance policies renew in January are getting policies with actual current-year rates.
    Plymouth Rock Assurance Company, the ninth-largest auto insurer, was the first carrier to issue all January renewals with real 2002 rates. Only a few other insurers are believed to be following its lead.
    "Avoiding provisional policies reduces consumer confusion and, by eliminating redundant processing and mailings, helps drive down expenses for our independent agents and us," said Paul Luongo, vice president, information technology, with Plymouth Rock.
    This year, the auto insurance industry and commissioner hammered out an early rate agreement, with Insurance Commissioner Linda Ruthhardt issuing the rate decision in early October. Anticipating the early decision, Plymouth Rock began upgrading and testing its systems in September and completed the work in time to implement the change by mid November.
    In prior years, since policies must be sent at least a month in advance of renewal dates, insurers needed to issue policies for January, and sometimes February, with provisional rates and made adjustments when the actual rates became available. This posed an administrative headache and added expense because approximately one-quarter of all auto policies renew in January--more than any other month.
    Meeting the deadline to issue up-to-date policies required changing internal systems that had been in place for years. "We pushed hard to get through a small window of opportunity," Luongo said. "It's part of our effort to help make auto insurance in Massachusetts easier and more efficient for our agents and their customers. We've had a tremendous response."
    Luongo says this year is the first time any company has avoided provisional January policies during his career in Massachusetts auto insurance, which goes back to the late 1970s.
    Plymouth Rock Assurance Corporation (www.prac.com) is the 9th-largest underwriter of automobile insurance in Massachusetts, represented by 130 independent agencies statewide.