Massachusetts Cuts Red Tape on Insurers, Plus Banks, Contractors, Barbers and More

Massachusetts is eliminating a series of insurance and other business regulations with a goal of making it easier and less costly to conduct business in the state.

According to Gov. Maura Healey, her administration’s “Massachusetts Means Business” initiative is axing or amending one quarter of the regulations under the Office of Consumer Affairs and Business Regulation (OCABR), which includes agencies governing banking, insurance, occupational licensure, standards, and telecommunications and cable. While insurance is a priority, the streamlining efforts also touch on everything from barber poles and electric poles to vocational education and home contractors.

Healey said the focus is to eliminate outdated and duplicative requirements, repeal unnecessary barriers to business growth, and rescind regulations that stifle competition. The administration is modernizing OCABR systems to save time and costs, improve license management, eliminate paper processing, and increase transparency for licensees, consumers, and employees.

The actions being taken reflect the results of a survey of businesses the state conducted in March to help identify regulations that the business community views as problematic. The administration shared the survey with associations and chambers of commerce to reach businesses across the state. According to the state, 24% cited insurance compliance and requirements as the top regulatory area that presents the greatest challenge for business, followed by 20% for business compliance inspections and examinations.

“Massachusetts means business. We need to support our entrepreneurs and companies, cut their costs, and make it easier to do business in our state,” said Healey. “That’s what we are doing by cutting red tape, simplifying regulations, and saving thousands of businesses and business owners significant time and money so they can focus on what matters most – growing jobs and contributing to our economy.”

Chris Stark, executive director, Massachusetts Insurance Federation (MIF), said the industry welcomes the “Healey-Driscoll administration’s efforts to make it easier for insurers to engage with the Division of Insurance, including eliminating duplicative and confusing paper filing requirements.”

The Division of Insurance (DOI) has begun updating some of its regulations that affect 1,400 licensed insurance companies and approximately 200,000 individual insurance producers. Changes thus far include eliminating the requirement to submit paper filings or computer discs and expediting the rate filing process.

In 2025, the DOI streamlined its required business processes with the National Insurance Producer Registry (NIPR) to enable entities to more efficiently update specific license details. The changes also allow businesses to add or remove members or designated responsible licensed producers to their license without a paper process or sending a check via postal mail.

DOI said it expects to launch an online payment portal by the end of the year that will allow licensed producers to pay fees electronically and reduce staff processing time. Earlier this year, the DOI’s financial licensing unit adopted a new integrated system that makes it easier to pay licensing fees and submit required reporting.

Insurance regulations being amended include ones covering:

• workers’ compensation hearings and rate filings;
• direct payment of motor vehicle collision and comprehensive coverage claims and referral repair shop programs;
• regulatory review of and public hearings on plans of reorganization or conversion;
• annual comprehensive financial statements reporting;
• procedure for surrender and non-renewal of licenses by insurers authorized to write motor vehicle insurance;
• private passenger motor vehicle insurance rates;
• legal services plans;
• motor vehicle insurance rates; and
• petitions for the adoption, amendment or repeal of regulations

Not the Only Target

Insurance is a major target but not the only target. The Division of Banks’ is updating eight of its regulations. The changes aim to provide wider and easier access to reverse mortgage counseling by offering phone and online services; streamline mortgage licensing disclosure requirements to make them more consistent with those of other states; align state regulations with applicable federal regulations; and ensure regulatory parity with federally-chartered credit unions.

Other regulatory amendments and removals involve Division of Occupational Licensure recommendations to make education more accessible, eliminate excessive burdens, and support smaller businesses, including at-home practitioners. These changes:

• Remove barriers for vocational students from receiving credit hours for programs completed in public vocational secondary or post-secondary school programs, creating a faster and more affordable pathway to licensure.
• Remove outdated rules for businesses like eliminating the requirement that barber shops have poles installed to identify their businesses.
• Allow assistant instructors in aesthetics, cosmetology, and manicuring to be licensed for more than two years.
• Eliminate the high school graduation requirement for barber instructors and assistant instructors, which widens the talent pool.
• Reduce student and school size minimums and allow schools to use buildings not located at their registered address to teach students, creating more opportunity for education.
• Ease requirements to establish at-home salons by no longer requiring the entrance to be visible from the street and immediately accessible at the front or side of the property.
• Allow electrologists to perform services for any customer in their home, increasing professional opportunity.
• Increase the number of credit hours from a barber school that can be applied toward a cosmetology degree, so barbers can more easily qualify for a cosmetology license.

Changes are also being made in regulations for architects, drinking water operators, plumbers and gas fitters, electricians, and public accountants as well as in rules affecting unit pricing in retail businesses to permit digital pricing; making tramway signage more efficient; and reducing obstacles to electric company pole attachments and broadband expansion.

The state is also creating a new home improvement contractor hub that will eliminate manual processes and paper applications and replace an outdated database so consumers can more easily search for contractor registrations and contractors can more easily manage their registrations.

Topics
Carriers
Contractors
Massachusetts