A panel appointed by Democratic Gov. Deval Patrick to study ways of reforming Massachusetts' auto insurance system has recommended curbing state rate regulation and moving toward a competitive, market-based system.

Gov. Patrick created a seven-member Massachusetts Automobile Insurance Study Group, made up of insurance executives, industry experts and consumer advocates, in late January.

The panel encouraged the commission to study mechanisms for insurance rate price flexibility, possibly while maintaining the current command system for compulsory coverages.

The commission also called for delaying implementation of any assigned risk plan residual market program until an evaluation could be completed of the 2006 redistribution of exclusive representation of producers.

Gov. Patrick said in a statement Monday that the recommendations are "a meaningful first step in achieving a balance which maintains affordability throughout the commonwealth while introducing a level of competition which will prove beneficial to all Massachusetts drivers."

Michael Moran, public affairs director for the American Insurance Association, said he was encouraged by the commission's embrace of market-oriented elements to the state's rating system.

But he was disappointed that the commission called for putting off assigned risk plan implementation even as Insurance Commissioner Nonnie Burns is still entertaining comments on the issue after holding a public hearing on it late last month.

The group also advised Gov. Patrick to delay implementing key changes to the state system pushed by former Republican Gov. Mitt Romney. The former governor wanted to add several demographic factors, such as marital status and credit scores, to the formula for calculating individual rates.

It also urged Gov. Patrick to delay a decision on whether to keep or scrap Romney's new rules for assigning high-risk drivers to automobile insurers until the issue can be studied more.

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Mass. Panel Eyes Reform Of Insurance Rate Process

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