Frederick Mutual Featured in Progress Magazine 2017

WHEN NANCY NEWMISTER TOOK OVER AS PRESIDENT and Chief Executive Officer of Frederick Mutual Insurance Company one year ago, she discovered that the 174-year-old company—the third-oldest mutual insurance company in the state—needed to hit the refresh button, and operate as a start-up business.
Frederick Mutual was founded in 1843 as a way to insure homes and small businesses against fire. Newmister —who arrived with more than 30 years of experience in the property casualty insurance industry, most recently as senior vice president and chief underwriting officer for Berkley Mid-Atlantic Group— said she wanted to develop a forward-thinking strategy that would challenge its old ways.
Frederick Mutual’s quiet and respected presence was not widely known, leading Newmister to reintroduce the company by offering relevant insurance products and services for homeowners and local commercial businesses.
The company will launch a new product line this summer, and is developing a digital solution that will make it easier for its agents and policyholders to request quotes and information online. Frederick Mutual Insurance Company is a property and casualty insurance company — rated A-(Excellent) by A.M. Best — that operates through independent agencies in Maryland, Pennsylvania and Virginia, offering coverage for 345 classes of business for more than 21,000 policyholders.
Newmister plans to ensure agents and policyholders know about the competitive coverage Frederick Mutual offers to those in the Frederick County area and beyond, citing its metropolitan proximity as a great indicator of the company’s potential growth. “Our team is focused on the future,” Newmister said. “We want to add to our rich history and serve our customers by delivering cutting-edge products.”

Nancy Newmister Featured in NAMIC's IN Magazine - "Mutual Transition"

You’ve worked in the mutual side of the business and the stock side; you’ve worked in an agency and for large companies. What was that like coming to the smaller-mutual-company side of the industry?
"It brought back all the different experiences I've encountered - marketing, underwriting, actuarial, product development, agency management. In a larger company, you have certain resources right there at your fingertips. If you want to go the predictive modeling route, you have actuaries to assist you in house. In a smaller mutual, you have to get out there and figure out for yourself where to get those resources. You have to pay attention to every single aspect of the business. I personally find it invigorating." 

Do you notice a difference between the stock and mutual sides of the insurance industry?
"Fostering strong business relationships is so important as a mutual. Agents do business with people they have relationships with. Key associates recognize the assets of your company and will work with you in terms of your strategies. We need to be better insurance experts in our markets of choice. My hope, for the mutual side, is to find even more efficient ways to do business that will keep up competitive." 

You've been in some high-ranking positions before, managing large regional offices, but what was it like to transition to CEO, a position you had not held before?
"It was my aspiration and I was ready to step into a new role. From 2012 until I joined Frederick Mutual, I had received a few inquiries in the super regional and national spaces. They were good opportunities, but I wanted to do something different. This was something different, but it aligned with my industry experiences." 
"I preferred the approach the board of directors took during the hiring process. We met multiple times over the course of several months in different group settings. Those were some very detailed and candid meetings. I got to know the board and they got to know me. You don't always get the luxury of understanding the new company dynamics prior to joining."

Are there any particular aspects that enticed you to lead a smaller mutual company?
"I am a huge fan of questioning everything and finding the root cause of problems in order to find sustainable solutions. Follow up and follow through are part of my daily routine. In a small company, there is no one sitting behind you to do it for you. You own it. You influence results daily." 

What is next for your company?
"I want to be on the forefront of helping mutual companies flourish. My belief is our customers desire a relationship with their insurance companies. During the economic downturn, significant disruption occurred for policyholders, agents, and companies. Mutual companies filled some of those gaps. In order to compete, we need to be the most efficient and effective in what we offer. A lot is on tap for Frederick Mutual; we are a 174 year-old start-up company."

What is a 174 Year Old Start-Up?

Frederick Mutual Insurance Company decided that opportunities for growth and the introduction of new leadership, products and services, inevitably changes the direction of a company. Frederick Mutual, the 3rd oldest mutual insurer in the state, needed to operate as a start-up business under the leadership of President and CEO, Nancy Newmister. As CEO, Newmister recognized the opportunity to reintroduce Frederick Mutual to the local community. She announced their start-up campaign as a demonstration of her refreshing approach to their business strategy. Newmister stated, “To achieve success in the next 174 years, we must keep pace with the markets and relevant industry trends.” The campaign is focused on paying homage to their rich history, while moving forward with innovative product solutions. The company is set to release their newest Secure Businessowners product this year, along with a digital Portal solution to Agents, making issuing business even easier.

Frederick Mutual Names New President and CEO, Nancy Newmister

Frederick Mutual Insurance Company’s Board of Directors proudly announced the appointment of Nancy Newmister as the new President & Chief Executive Officer on May 2, 2016. As CEO, Nancy Newmister will provide oversight of all business operations, including the management of staff, profitability, agencies, and industry partnerships. Nancy joins Frederick Mutual with over 30 years of experience in the property casualty insurance industry, most recently as Senior Vice President and Chief Underwriting Officer (CUO) for Berkley Mid-Atlantic Group.