The AIB has been the automobile insurance industry’s service bureau in Massachusetts since 1925, offering support for rates, rules and forms, as well as actuarial and legal services in private passenger and commercial auto insurance.
	Private Passenger Auto Insurance
	The private passenger rates had been on a “fix-and-establish” basis since 1977, but effective April 1, 2008, private passenger rating has operated under “managed competition”, directed by the Commissioner of Insurance. The AIB is authorized by G.L. Chapter 175E and Division of Insurance regulation 211 CMR 79 to make advisory filings for private passenger automobile insurance rates, rules, policy forms and endorsements. The AIB filings for rates are made on behalf of authorizing companies writing less than 1% of the total Massachusetts private passenger insurance premium, and also serve as advisory filings for use by member insurers as each company deems necessary. AIB filings on policy forms, endorsements, and rules are made on behalf of all authorizing members and serve as advisory filings for use by all members.
	Commercial Auto Insurance
	Commercial automobile insurance rates in Massachusetts have been on a competitive basis since 1981 under the provisions of Massachusetts G.L. Chapter 175E and the Division of Insurance Regulation 211 CMR 91, which provide that each company writing 1% or more of the total commercial automobile insurance business in Massachusetts must file its own rates. The AIB’s filings for rates are made on behalf of the remaining companies which have authorized the Bureau to make such a filing, and are available for use by all member insurers on an advisory basis. The AIB also provides industry and company ratemaking data for the over 1% companies filing their own rates. Filings for policy forms, endorsements, and rules are made on behalf of all insurers.
	AIB Services and Products
	The AIB provides numerous products and services to its member insurers, including: Private Passenger and commercial advisory rate and rate component filings Private Passenger loss costs Vehicle Rating Group physical damage rating program Trend analyses Financial data for profit models Annual town-index (territory) analysis MAIP Residual Market rate adequacy analysis Massachusetts industry and company statistical ratemaking data Accident Year (Year-to-Date) Quarterly Comparison reports Vehicle inspection system odometer data from the Massachusetts RMV
	Claim Information
	Detail Claim Database of claimant, insured and provider information VIN Search of Massachusetts statistical plan data on prior losses tied to VIN Repair and glass shop listings
	Member Services
	Private Passenger and commercial advisory rules manual Advisory forms, endorsements and policy Assistance on regulatory matters affecting the industry Member company and agent inquiries on rules, forms and rating procedures Company DOI filings
	Vehicle Rating Group Program
	The AIB Vehicle Rating Group (VRG) program is an approach for rating physical damage coverages based on the assignment of vehicles to groups with similar expected cost differences. A vehicle’s rating group, along with its model year, is then used to determine the rate for physical damage coverage. The VRG program is based on a predictive model developed using Massachusetts historical loss experience. By using information on vehicle characteristics, the vehicle groups defined by VRG are more homogeneous than the rating symbol groups previously adopted under the fix-and-establish regulatory system. The rate relativities for the VRG program also reflect the expected cost differences by model year.
	Similar to adopting other rating plan changes, a company must file with the Massachusetts Division of Insurance its adoption of the AIB advisory filing for VRG. Whether adopted separately or in conjunction with a rate level change, the insurer is responsible for complying with the regulatory requirements of the DOI for rating plan changes. The program can be adopted in full, or on a going-forward basis, applying only to selected recent model years. Other ways of minimizing the impact of transition on a book of business (such as tempering model year/VRG relativities) may be used.
	Detail Claim Database
	The Detail Claim Database mandated by the Commissioner of Insurance is a unique collection of data from closed injury claims against automobile policies written in Massachusetts. The DCD contains information on injuries, treatment, billing, payments, special claims handling activity, and the professionals and individuals involved in the claims. Company claims staff, special investigative units, and the Insurance Fraud Bureau use the DCD to review prior claims and to highlight the professional and individual combinations which can reveal patterns of fraud. The professional boards of registration also have access to DCD information about their members involved in treating automobile injuries. The DCD is unparalleled in its level of detail, accuracy, and level of participation and is an integral part of the battle against insurance fraud.
	Insurance Fraud Bureau
	In addition to its functions as a rating organization, the AIB shares common management with the Insurance Fraud Bureau of Massachusetts (IFB) and provides funding for that organization.