Plan to Bring 300 Jobs to Springfield
New Managed Competition Plan Encouraged Auto Insurer to Expand Operations
"I am delighted that Liberty Mutual has decided to add up 300 jobs here in Massachusetts, and specifically, here in the great city of Springfield," said Governor Patrick, whose Administration worked closely with Liberty Mutual and local officials to make the expansion a reality. "Liberty Mutual's expansion demonstrates the strength of the business environment in the Commonwealth and our commitment to economic development and job growth everywhere."
Boston-based Liberty Mutual Group sells full lines of coverage for automobile, homeowners, valuable possessions, personal liability, and individual life insurance. Liberty Mutual Group currently employs over 40,000 people worldwide, 4,400 of whom are located in the 33 offices across Massachusetts.
Its new Springfield office, located at the former Springfield Armory in the STCC Park, is scheduled to open in the third quarter of the year. It will host a variety of business operations, including a customer service call center to support Liberty Mutual's car and home insurance business both in Massachusetts and throughout the nation.
In anticipation of the April 1, 2008 inception of managed competition, Liberty Mutual, the state's fourth largest auto insurer, will add 30 new sales positions across the state by April. This represents a fifty percent increase over its current sales force levels.
"The long-awaited introduction of managed competition by Governor Patrick and Insurance Commissioner Burnes demonstrates their commitment to making the state a more attractive and competitive car insurance market, and we intend to be well-positioned for growth," said Edmund Kelly, President and CEO of Liberty Mutual. "Massachusetts consumers will benefit from increased choice, and the state coffers will benefit from increased employment."
Under managed competition, Liberty Mutual's new prices are, on average, 10.7 percent lower than their 2007 levels. Some Massachusetts drivers will be eligible for premium decreases of 35 percent or more. In November 2007, Peerless Insurance, a Liberty Mutual Group company, announced plans to come back to the Massachusetts car and home insurance market 20 years after it became one of many companies to stop issuing new and renewal policies because of the state's malfunctioning car insurance system.
"Springfield is a city with considerable potential and a talented and skilled pool of employees," said Mayor Domenic Sarno. "Liberty Mutual's new Springfield office will help to sustain and reenergize this important Western Massachusetts hub."