Massachusetts Governor Deval Patrick was in Springfield this morning to make the announcement, during an 11:00 press conference at the gated Technology Park at Springfield Technical Community College, that Liberty Mutual Group is establishing an office there.

Initially, the company said, according to a release (full text below) and an Associated Press article at the Boston Globe, the office will include 60 employees for a customer service call center, planned to open in July. By December, Liberty Mutual plans to employ 150 people there, with a long-term goal of 300.

Governor Patrick was likely present in part because of pending changes to Massachusetts auto insurance regulation. The AP article notes that Liberty Mutual acknowledged “the state’s shift to a ‘managed competition’ system.”

The state currently has control over what happens to long-vacant former Technical High School (pictured below), close to the former Armory. If nothing is done, the building will be back in the hands of the city to decide what to do next. City officials have expressed hope that Tech would become a state backup data facility, which the state earlier indicated would be the plan. Competition with the Technology Park became an issue for locating the facility. Will Liberty Mutual’s plans ease the situation?

Depending on redevelopment plans at former Tech, if residents or employees are able to fill that empty hulk—which the downtown residents are said to be weary of looking at on a daily basis—the addition of Liberty Mutual employees helps lend greater weight to the idea that more services in that area can be supported—like restaurants, which some believe are possibly leaving downtown Springfield in droves, or can’t last long there when they set up shop. Will Liberty Mutual’s plans ease that situation, as well?

GOVERNOR PATRICK ANNOUNCES LIBERTY MUTUAL’S PLAN TO BRING 300 JOBS TO SPRINGFIELD
New Managed Competition Plan Encouraged Auto Insurer to Expand Operations

Thursday, February 28, 2008 – Joined by state and local officials, Governor Deval Patrick today announced Liberty Mutual Group plans to add up to 300 jobs at its new Springfield office.

“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 50 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.”

This entry was posted on Thursday, February 28th, 2008 at 1:15 pm and is filed under City corridors, Development, Downtown, Media, Photos, Planning and design, Press conferences, Springfield, Urban Compass, Urban design, Walkability.