Bakke's Leadership Helped Steer N.J. Auto Market To Stability

TRENTON, N.J. – New Jersey Insurance Commissioner Holly Bakke's announcement that she will leave office next month marks the end of a tenure that increased auto insurance consumer choices and saw a turnaround of the state's dysfunctional auto insurance market.

"Commissioner Bakke's foresight in promoting and working toward changes needed to turn around New Jersey's auto market were a wonderful example of a proactive commissioner responding to the needs of consumers," said Don Cleasby, vice president, regional manager and counsel for the Property Casualty Insurers Association of America (PCI). "Her previous public service as an insurance regulator and court administrator provided her with a unique perspective on New Jersey's market issues and the resolve to find balanced and lasting solutions. She was objective, open and honest in her approach, and that's all anyone could ask of a commissioner."

Bakke's tenure as commissioner began more than three years ago, shortly before the Automobile Insurance Competition and Choice Act of 2003 was signed into law. At the time, three decades of excessive insurance regulation in New Jersey had resulted in more than 20 auto insurers leaving the state. State Farm Indemnity Co., which insured approximately 730,000 New Jersey automobiles, had planned to leave the state but reconsidered in light of the legislative and regulatory changes. In addition, insurers Mercury and GEICO entered the market, restoring competition and vibrancy to the market. The result is that 47,000 previously uninsured New Jersey drivers now have coverage, and 1,200 new insurance agents are active across the state.

"Commissioner Bakke shepherded the implementation of the auto insurance reform act, which made these changes possible," Cleasby said. "Under her leadership, the Act was applied in a way that enhanced competition in the state's auto market. Her efforts have provided New Jersey consumers with more choices in their auto insurance purchases and the coverage available to them."

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write $173.6 billion in annual premium, 39.1 percent of the nation's property/casualty insurance. Member companies write 49.1 percent of the U.S. automobile insurance market, 37.8 percent of the homeowners market, 31.8 percent of the commercial property and liability market, and 38.5 percent of the private workers compensation market.

Source: PCI