Frederick Mutual Insurance Company has embarked on a business transformation with Federato, the AI company powering RiskOps and real-time portfolio management.
As Frederick Mutual transitions to a solely commercial-line insurance carrier, they will use Federato to streamline core systems and move toward completely digital distribution. Federato’s tech-first approach to implementation will equip Frederick Mutual’s underwriters with sophisticated data capabilities typically limited to larger carriers with larger budgets and headcounts, and on a much shorter timeline than conventional digital transformation rollouts. This initiative is designed to reduce friction in the underwriting workflow, enable real-time portfolio management, and dramatically improve Frederick Mutual’s customer experience.
Frederick Mutual chose Federato for its ability to enable straight-through processing of complex policies and route deals to underwriters only as an exception, as well as its ability to harness real-time, actionable data for dynamic portfolio management. Using Federato, Frederick Mutual will be able to guide policy creation with recommendations based on up-to-date portfolio data.
"The transformation we expect to achieve with Federato will be vastly impactful on our operational efficiency. Our underwriters will be equipped with the tooling and data to quote and bind policies quickly and effectively, simultaneously improving our client experience and our bottom line,” said Nancy Newmister, CEO at Frederick Mutual. “This is a significant leap forward in our mission to deliver superior commercial insurance services with the personal touch that our customers have come to expect."
One of the key goals of Frederick Mutual’s AI initiative with Federato is to unlock portfolio growth without increasing expenses.
"We expect Federato to power a digital-first approach in which we use complex rules and goals to route only the most complex submission to underwriters, and use straight-through processing for a larger proportion of our inbound. This will help us make decisions quickly, better manage our exposures, and save on reinsurance costs."
Frederick Mutual's engagement with Federato shows the potential for small to mid-sized mutual and regional insurance carriers to undertake significant digital transformation projects that have historically been limited to larger organizations. Such endeavors have in the past been notoriously expensive and lengthy; Federato’s solution offers a path that is both rapid and affordable, typically seeing results in months rather than years.
"Small mutuals like us are often resource-constrained compared to large carriers," said Evan Krozy, Chief Operating Officer at Frederick Mutual. "Federato’s tech-first approach to deploying sophisticated data tooling and portfolio management capabilities will allow us to compete in a way that is usually only within reach for global carriers, and to do so this year, not some interminable time in the future."
Seven years ago, Frederick Mutual re-positioned itself as "a 174-year-old startup”, embracing product innovation and leaning into new technologies with practical business value. This partnership with Federato underscores the company's intent to remain nimble and competitive in a changing insurance industry.
"Leveraging Federato's AI-powered underwriting and portfolio management technology is a strategic priority for us,” said Paul Stenbjorn, CIO of Frederick Mutual. “We expect to see a significant improvement in how we manage risk and make data-driven decisions. This collaboration will help us remain at the forefront of innovation while honoring our legacy of trusted service."
Frederick Mutual Insurance Company was founded in 1843, is the 3rd oldest insurance company in Maryland, the 9th oldest in U.S and we are celebrating 181 years in 2024!
57 Thomas Johnson Drive
Frederick, Maryland 21702
www.frederickmutual
(301)663-9522
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