State starts a new push to overhaul auto system

Governor Deval L. Patrick's new consumer affairs chief yesterday launched a study group whose goal is to report by mid-March on ways to cut costs and increase competition within the state's heavily regulated auto insurance system.

Daniel Crane, former bar counsel at the state's Board of Bar Overseers, starts Monday as director of the Office of Consumer Affairs and Business Regulation. He said one of his first priorities will be to work with a six-member study group to help set an agenda for changing the state's auto insurance system.

"We'll be identifying opportunities within the existing system to increase competition and reduce costs while maintaining capital," Crane said. Massachusetts is the only state in the nation where regulators set all auto insurance rates.

Crane said the group won't attempt a "soup-to-nuts" review of the system with the goal of coming up with a "solution," but will instead attempt to assist the state's insurance commissioner chart a new direction.

Auto insurance has been the focus of an intense industry struggle over the past several years, with many of the state's carriers pushing for a system in which companies would be able to set their own rates. Former Governor Mitt Romney supported competitive rate-setting, but his administration made little headway against Commerce Insurance of Webster and Arbella Mutual Insurance of Quincy, which generally opposed change.

Since taking office, Patrick has sacked Romney's insurance commissioner and put on hold her plan for revamping the way drivers that companies won't insure voluntarily are apportioned among companies.

Crane's study group, due to report back by March 15, includes two auto insurance executives on opposing sides of the broader regulatory issue, but consists largely of members who have little involvement in the auto insurance business.

The group includes:

Susan Scott, legal counsel at Premier Insurance of Worcester, which is in favor of competitive rate-setting.

Paula Gold, a vice president at Plymouth Rock Assurance Corp. of Boston, which opposed many of the Romney administration's proposals.

Joseph Meador, a professor of finance and insurance at Northeastern University.

Springfield lawyer Paul Doherty.

Developer Patrick Lee of Trinity Financial.

Deirdre Cummings, consumer program director for the Massachusetts Public Interest Research Group.

Cummings, who has participated in or testified before a number of previous auto insurance task forces, said she was invited by Crane on Thursday to join the group. "It's a good signal that the Patrick administration is including and embracing the consumer voice," said Cummings, who opposed many of the Romney administration's initiatives.

James Harrington, head of the Massachusetts Insurance Federation, an industry group that supported Romney's auto insurance measures, said he knew little about the study group's members.

"We're hopeful that the task force will come to consensus to continue the reforms initiated by the last insurance commissioner," he said.

Crane, 56, worked nearly seven years at the board of bar overseers, managing the roughly 6,000 complaints filed each year against lawyers in Massachusetts, and personally handled a number of high-profile cases.

He said he has been on sabbatical for the past six months.

Several consumer activists said they were not familiar with Crane, but Jack Cinquegrana, president of the Boston Bar Association, said he has known Crane professionally for many years.

"Dan's reputation as bar counsel was competent, fair, and even-minded," he said.

Bruce Mohl can be reached at mohl@globe.com.