In what may be a new chapter in the so-called 'Massachusetts Miracle," carriers for the first time in perhaps 30 years are displaying signs of optimism regarding the auto insurance market, as the state prepares to transition from a government-mandated rating structure to what it is calling a "managed competition" system.

Essentially, instead of rates for all companies being set entirely by the state's Division of Insurance, insurers will be allowed to submit their own rates for approval. This is being hailed by many industry observers as a significant step for a state that has not seen a market based on competition since 1977--and even then for only a brief five-month period.

Across the country, the auto insurance market has, in recent years, been seen as vibrant and competitive--with Massachusetts a glaring exception. According to the Division of Insurance, 35 insurers have left the market since 1990, and only 19 carriers remain in the state.