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Mass. House approves updates to insurers insolvency fund

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Mass. House approves updates to insurers insolvency fund


BOSTON, Mass. (SHNS)–Massachusetts residents and businesses would secure stronger protections if their property and casualty insurance carriers end up going bankrupt, under a bill gaining late-session momentum on Beacon Hill.

Without debate, the House last week quietly passed a bill (H 4772) that aims to update parameters for an insurance social safety net fund, created by the Legislature in 1970, and raise the caps on property and casualty claims that have not been revised in decades. The Senate sent the redrafted bill, originally sponsored by Rep. Daniel Cahill, to the Senate Ways and Means Committee on Monday.

The bill would ensure that the Massachusetts Insurers Insolvency Fund aligns with a framework promoted by the National Association of Insurance Commissioners in 2009, said Barbara Law, who administers MIIF and is the CEO of Guaranty Fund Management Services. The bill also clarifies that MIIF covers cybersecurity insurance claims.

“The Massachusetts version of the statute was one of the oldest in the country — it has not been updated from time to time over the years,” Law told the News Service. “So there are a lot of opportunities to bring current best practices from other states to Massachusetts, plus an opportunity to increase the cap for coverages. So individuals, particularly on the property side, we would be able to ensure that there was enough coverage allowed by the law so they would have a greater likelihood of having the entirety of their claims covered.”

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Weather-related events in recent years have caused property insurance insolvencies in Louisiana, Florida and South Carolina, she said.

“We wanted to be prepared if those insolvencies started to have a greater effect on Massachusetts, and we also wanted to make sure that if we start to experience that type of weather up here, that we were prepared,” Law said. “So it really is about preparedness. We wanted to make sure that our law was in shape to make sure that it afforded enough coverage for the residents in Massachusetts.”

The bill would boost the existing claims cap, such as for car accidents and environmental cases, from $300,000 to $500,000, a level already enacted in Connecticut and Rhode Island, according to testimony Law sent to the Financial Services Committee co-chairs last fall. The new limit would not apply to workers’ compensation claims, which do not have a cap and are paid by the fund for life, Law said.

Aiming to provide a safety net for Massachusetts home and property owners, the bill also proposes a $1 million cap for residential or commercial property, a policy that Law said was implemented in California after a wildfire caused an insurer to go bankrupt.

“We do recognize that Massachusetts has high reconstruction values for property, so we recommend a $1 million limit for property claims just to ensure that we keep pace with the time,” she said.

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All insurance companies that are licensed to provide property and casualty coverage in the commonwealth are members of MIIF, and they contribute to the fund to help pay out claims, according to GFMS.

The Massachusetts Association of Insurance Agents supports the bill, particularly the special real property cap provision due to the “increased severity and frequency of these claims,” said CEO Nick Fyntrilakis. In written testimony, Fyntrilakis warned Massachusetts is “currently disadvantaged compared to other states” that have embraced updated insurance policies.

“This bill would enhance benefits to Massachusetts residents affected by insurer insolvencies and reduce costs to the property and casualty insurance guaranty fund framework in the Commonwealth with no tax increases or increased appropriations if enacted,” Fyntrilakis said. He added, “These updates are much-needed and, in some instances, long-overdue.”

Law said MIIF, which is regulated by the Division of Insurance, has paid roughly half a billion dollars in claims to policyholders throughout its history when small and large insurance companies were insolvent. Workers’ compensation claims have largely driven activity in the fund, though Law said MIIF has also seen bursts of activity tied to insolvencies from asbestos-related claims in the late ’80s and early ’90s and the aftermath of the 9/11 terrorist attacks.

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Massachusetts tops U.S. in AI job loss risk, Tufts report says

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Massachusetts tops U.S. in AI job loss risk, Tufts report says


Technology

A new report estimates 7.35% of jobs in Massachusetts are at risk of displacement from artificial intelligence, the highest share in the nation.

Aerials of Seaport District always in a growth mode of construction. (David L Ryan/Globe Staff)

A new Tufts University study finds that Massachusetts is the most vulnerable state in the nation to job disruption from artificial intelligence — a shift researchers say could reshape the state’s workforce and economy.

The report, “Will Wired Belts Become the New Rust Belts? AI and the Emerging Geography of American Job Risk,” released in March, estimates that 7.35% of jobs in Massachusetts are at risk of displacement in the near term due to artificial intelligence, the highest among U.S. states. Boston, one of the nation’s leading innovation hubs, is also among the most exposed cities, with an estimated $20 billion in annual income losses tied to AI-driven job disruption. 

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“The jobs loss will be among more educated, typically higher-paying jobs,” said Christina Filipovic, head of research at Digital Planet, the research center at Tufts’ Fletcher School that completed the study. That distinction marks a stark departure from past waves of automation, which primarily displaced lower-wage, manual labor workers.

Which jobs are most at risk? 

The report finds that AI exposure — or how much AI tools can reach or influence a job — is highest in occupations centered around data, analytical or language-based skills, and cognition — the same kinds of knowledge work that dominate Boston’s economy. 

AI job vulnerability, by comparison, goes a step further: it measures how likely AI exposure will lead to job loss or major restructuring.

Highly vulnerable roles in Greater Boston include: software developers, market research analysts and marketing specialists, management analysts, and customer service representatives. Software developers alone could see more than 12,700 jobs affected in the Greater Boston region.

Bhaskar Chakravorti, dean of global business at The Fletcher School, describes the moment as a paradox: “The occupations that are seeing the greatest productivity boosts are also the occupations that are seeing the greatest job risk, and Boston is high in all those areas,” he said.

“Boston is really interesting. It’s almost a Petri dish for how AI is going to increase productivity and also potentially change the way people do work and maybe displace a certain proportion of people,” Chakravorti said.

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On the other end, jobs least exposed to AI include roles like cement masons and concrete finishers, cooks, ship engineers, and ambulance drivers — positions that rely more on physical labor than cognitive tasks.

Why Massachusetts stands out

Researchers point to the structure of Massachusetts’ economy as a key reason for its high exposure. The state’s concentration of universities, tech firms, and innovation mean a large share of workers are employed in highly educated, knowledge-based roles susceptible to AI.

“In addition to the high education levels, Boston in particular is such an innovative city … a lot of the tech industry that’s in the area makes Massachusetts a bit more vulnerable,” Filipovic said.

Chakravorti added that the region’s role as a hub for education and research puts it at the center of the transition.

“Boston right now is at the cutting edge of figuring out how much AI to use in the classroom in order to prepare students for jobs that are going to include and involve AI,” he said.

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A warning sign for the nation

The implications of AI’s arrival extend far beyond Massachusetts. 

The report estimates that nationwide, between 9.3 million and 19.5 million jobs are at risk of being replaced by AI, with up to $1.5 trillion in annual income loss.

The report identified a group of “Wired Belt” regions — including cities like Philadelphia, Atlanta and Phoenix — that could face similar job disruptions.

“In many ways, Boston is a canary in the coal mine, and we’ll see similar things playing out in knowledge-intensive cities,” Chakravorti said.

The researchers say the goal of the report is not just to measure risk, but to prompt legislative and societal action.

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“What we were most curious about was the nature of job loss … and then also to help policymakers at various levels figure out what the best path is forward,” Filipovic said.

Chakravorti was more blunt about the urgency for the city and state to meet the moment.

“We are watching this hurricane hit us … and we are largely sitting on our hands in terms of doing something about it,” he said.

Profile image for Annie Jonas

Annie Jonas is a Community writer at Boston.com. She was previously a local editor at Patch and a freelancer at the Financial Times.

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Inside the Massachusetts courtroom where former students face a teacher charged with rape

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Inside the Massachusetts courtroom where former students face a teacher charged with rape


PITTSFIELD, Mass. — The women said they were frightened, but they didn’t show it Wednesday in a Massachusetts courtroom as they watched the teacher who allegedly preyed on them when they were students at the posh Miss Hall’s School plead not guilty to rape.



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Heavy police presence due to ‘ongoing incident’ in Tewksbury

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Heavy police presence due to ‘ongoing incident’ in Tewksbury


There is a heavy police presence in a section of Tewksbury, Massachusetts, on Wednesday afternoon due to what authorities are describing only as an “ongoing incident.”

“There is currently a heavy police presence on Salem Road due to an ongoing incident,” Tewksbury police said in a social media post just before 1 p.m. “Motorists are advised to avoid the area and seek alternate routes if possible. Please allow emergency personnel the space they need to respond safely and efficiently”

No further details were released. Police said they will provide updates as more information becomes available.

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