X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The beginnings of Arbella Insurance weren’t very auspicious. Massachusetts’ Commonwealth Automobile Reinsurers (CAR), the state’s reinsurance pool created in the late 1970s, dominated a market in disarray. By the early 1980s, more than 60 percent of all drivers were in the pool, which carried a deficit of around $500 million. Insurance fraud was rampant, with overworked courts and police disinclined to do much about it.

Insurers were leaving the state in droves, including Kemper Group, which insured 7 percent of the Massachusetts auto market. The move would have required Kemper to pay a deficit of $40 million to CAR, cease writing all other lines of business, left more than 400 personal lines employees out of a job, and thousands of policyholders without coverage, said Frank Bellotti, former Massachusetts attorney general and current vice chairman of Arbella’s board of directors.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Dig Deeper

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.