MASSACHUSETTS -- The nation's largest insurance company is making its way to the Bay State. American International Group says it will soon begin doing business in Massachusetts.

The New York based AIG is the largest of four insurance companies planning to enter the state market. This move is a sign that the state's newly deregulated auto insurance market is having early success becoming more competitive.

In April, insurance companies began setting their own auto insurance rates in Massachusetts. For the past 30 years rates were set by regulators, which set limits on policies and discounts.