Warren Buffett CEO of Berkshire Hathaway has its insurer Geico debating on selling in Massachusetts. Geico’s decision to come to Massachusetts could actually lower premiums for many drivers.
The Maryland based company recently filed papers with the state Division of Insurance and could win approval to begin offering products within six weeks.
Massachusetts was the only state Geico had not done business in and is to become the eight company to work in the state. Previously, insurance rates were largely set by the state, which resulted in minimal price differences between companies. Massachusetts was the last state to have had such a system.
The companies that have come to Massachusetts in 2008 include Progressive Insurance, Vermont Mutual Insurance Group, and Peerless Insurance to name a few.
A group of special agents who sell policies mainly in urban areas are said to go out of business with the change of rules. Many insurance agents have began to see the impact of the larger companies entering Massachusetts.
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