Officials at Arbella Insurance Group of Quincy were no-shows at a recent award ceremony for their local state representative, Ronald Mariano, the House chairman of the Legislature’s Committee on Financial Services.
Arbella officials say it was a “budgetary decision” not to put in an appearance at the Oct. 10 event, but industry officials say the Quincy company snubbed its own representative in the Legislature because of his strong support for auto insurance competition. Arbella was one of a handful of companies that initially resisted efforts by the Patrick administration to introduce “managed” auto insurance competition this year; Mariano was a supporter of greater competition.
Mariano was named Insurance Professional of the Year by the Insurance Library Association of Boston. Arbella chief executive John F. Donohue serves on the library association’s board. The award ceremony was held at the Boston Harbor Hotel and tickets were $75 apiece, or $750 for a table.
Arbella spokesman Doug Bailey said the company, which had a $441 million surplus at the end of last year, is cutting back on events like the library association award. Bailey said the decision was “prompted in part by managed competition, which is a recent phenomenon.” Arbella is the state’s third largest automobile insurer.
One industry official doesn’t buy Arbella’s explanation. The official, who asked that he not be identified, said the absence of Arbella officials at the event was a sign of sore feelings. “If they’re worried at Arbella about spending a few hundred dollars, I hope this doesn’t mean they’re facing financial problems,” the official said.
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