Misrahy Takes Helm at Fremont

Mary-Lou Misrahy was recently named president of Fremont Compensation Insurance Co. Misrahy, with more than two decades of corporate leadership experience, knows she has some big challenges ahead of her, but she is ready to roll up her sleeves and get to work.

“I’m experienced at every aspect of workers’ comp operations and the financial side of it,” Misrahy said.

Misrahy has held a wide array of positions with the company over the years, starting as a claims supervisor for the Southern California region in 1982. A graduate of UC Davis, she moved up to claims manager for Northern California from 1983-’86, then moved on to a number of different positions, topping off with her role as senior vice president for marketing, customer services and loss control from 1991-’94.

It was later in 1994 that Misrahy, who sits on the executive committee of the board of trustees of the California Workers’ Compensation Institute, began her relationship with ULICO Insurance Group. At ULICO, she was responsible for the development and implementation of a strategic business plan for the company. She returned to Fremont in 1998, where she held roles such as senior vice president for underwriting and corporate planning, and senior vice president, corporate marketing.

Fremont has seen its share of challenges, especially with a lowered A.M. Best rating and oversight from the CDI.

Fremont, which writes in California and several other Western states, has $1.3 billion in assets and is uniquely positioned in the workers’ comp market, according to Misrahy.

“We have been looked at with a fine-tooth comb,” Misrahy commented. “I think the challenge and the appeal of this position is looking at it as an adventure. I have the best group of employees around me to go into it. We want to be disciplined underwriters.”

Misrahy noted that the health of the California workers’ comp marketplace needs to be addressed. “Employers in California are experiencing dramatic rate increases, in part to mitigate the underpricing of the past that really was started with open rating in 1995,” Misrahy said. “There are still carriers in the marketplace who have not taken a realistic look at expected losses and continue to underprice the product. As a consequence of this pricing, ongoing reserve deficiency as noted by the WCIRB has not been addressed, which could jeopardize the entire workers’ comp program.

“In addition, California has had low benefit levels for seriously injured workers, and the administrative system to adjudicate claims is unnecessarily complicated with inordinate delays in resolving claims. The legislature needs to look at the system in its totality.”

Topics California Workers' Compensation