Massachusetts Attorney General Martha Coakley, though, released a report this month contending that consumers are not benefiting as much as they should under the system.

In a statement, Ms. Coakley said, "While the long-term results of this new system remain to be seen, our office is concerned that consumers may not, in fact, be getting the best rates and the protections they deserve."

Ms. Coakley said the report notes that most consumers have not shopped around for insurance, and therefore are not driving rates down. She stated that rates are now actually increasing.

The report says that if the old system had continued through 2008, rates would have been reduced for essentially all consumers, with average rate reductions "much greater than those seen under deregulation." It slams insurers for seeking higher profits since the new system was implemented, and says the system has led to "less transparency in the rate-setting process."

It also states, "Because insurers are no longer required to offer insurance to consumers they consider undesirable, many good drivers, particularly in urban areas, may be non-renewed or denied coverage."

However, a survey of 4,500 drivers found that the number of drivers in the residual market is declining, "meaning that more drivers are able to find acceptable insurance premium and service options among competing companies in the marketplace."

The survey was conducted by the Massachusetts Office of Consumer Affairs & Business Regulation (OCABR) in April 2009–with minorities and urban drivers "over-sampled to ensure that their experiences were accurately reflected"–and one-on-one interviews with over 50 insurance agents and executives.

The survey also found that average premiums per vehicle dropped 8.2 percent during the first year under managed competition, compared to a 5.2 percent decline the previous year under the former system.

Paul Tetrault, state affairs manager for the Northeast for the National Association of Mutual Insurance Companies, criticized the attorney general's findings, saying, "The attorney general opposed the transition to managed competition at every opportunity. Now that it has been remarkably successful for more than a year and a half, bringing not market disruption as critics predicted but rather lower prices for good drivers and more choices in the marketplace, it is incredible that the attorney general would continue to undermine that success."

Changing the system now, he added, would return Massachusetts to a system where rates would be "highly politicized."

Edmund Kelly, chairman, president and CEO of Liberty Mutual Group, also defended the results of the new system.

In a statement he said, "To better meet increased consumer demand under 'managed competition,' we lowered our prices, added new products and improved service across the state. As a result we have thousands of new customers, and over 10 percent growth since managed competition began last year. That tells us that competition is working."

He added that Liberty Mutual is adding 400 new jobs in the state as a sign of its commitment to the new system.

The OCABR survey and attorney general report found common ground in calling for better outreach and education.

The attorney general report said, "There is currently no easy way for consumers to determine what the market prices for insurance are, what each company will charge a particular individual, and what discounts and special coverage options are available."

The OCABR survey noted, "Not all consumers availed themselves of the new system in the first year. Some believed shopping around would be time-consuming, they were skeptical that they would save money, they found it difficult to compare insurance policies from different companies, and they believed they could not change insurance carriers before a policy had expired."