Lisa Keysar President and CEO Union Mutual of Vermont. Baldwin Photography

by Joyce Marcel, Vermont Business Magazine

Lisa L. Keysar is a true rarity — a top female executive in a man’s insurance world.

Keysar, 62, was serving as the executive vice president of Montpelier’s Union Mutual of Vermont when she became president and CEO in October 2020, after the sudden death four months earlier of its popular leader, Michael Noblesat, at age 50.

Keysar is the 15th person to be the company’s CEO and the first woman to lead the firm since it was founded in 1874. She is steeped in the insurance business: her father served as president and CEO of Union Mutual from 1993 to 2001.

The company celebrates its 150th anniversary this year.

“Union Mutual took 147 years to have the first female president,“ Keysar told me. “And I actually am the first second-generation president. But it’s getting better. Women today comprise 50% of our executive team, so it’s definitely changing. It’s not so much that it’s deliberate, but it happens to be that they’re the best people at the time.“

Behind Keysar’s desk is a framed quote from the late Supreme Court associate justice Ruth Bader Ginsberg: “Fight for the things that you care about, but do it in a way that will lead others to join you.“

“I am a very direct person,“ Keysar said when asked about the sign. “I have a management style called ’radical candor,’ where you care deeply but are very direct with employees. I believe in managing conflict right up front, and that’s kind of my reputation at the company.“

When you think of the insurance industry, you likely picture the gecko with an Australian accent, the bewildered emu and his friend Doug, the ever-perplexing Flo and Jamie in their white attire, the chaotic Mr. Mayhem, or the red-clad figure alongside famous football players.

These characters raise two key questions: Must insurance be sold with a gimmick? And would rates be lower without the cost of those ubiquitous television ads?

The answer to both queries, of course, is that it depends. The insurance industry is heavily regulated, for one thing, so rates are controlled. The insurance world is also quite complex in its organization.

Some large insurance companies, like Geico and Progressive, are owned by their stockholders and sell, in large part, directly to customers over the internet or by phone. These are the customers whose attention they are trying to grab in the commercials.

Other insurance companies, like Union Mutual — the third largest insurance company based in Montpelier, after National Life and Vermont Mutual — are owned by their policyholders.

“Our policyholders are the ones who own the company,“ Keysar said. “But we have a members meeting every year, and nobody ever comes. So we are run by an independent board of directors that oversees the company.“

Union Mutual sells — or “writes,“ as it is known in the trade —property and casualty insurance through a network of insurance agents. It insures homes, autos and businesses from weather-related perils, fires, accidents and other catastrophic events. It is connected to its policyholders through the independent agencies.

Keysar estimates that they sell to over 400 agencies.

“A lot of what you’re seeing on TV is just the cost of advertising to get people to want to look them up online and write business with them,“ Keysar explained. “We write regional property and casualty insurance in New England and in New York. It’s home, auto and commercial, like businesses. We write a lot of habitational policies — apartment houses or condominiums and things like that. Vermont used to be one of our biggest states. It’s not anymore; we’re pretty spread out in New England.“

In addition to the six New England states, Union Mutual also does business in New York. Massachusetts is its biggest territory, but that may soon change. The company is in the process of “affiliating“ with Norfolk & Dedham, a group of Massachusetts insurance firms that would more than double Union’s size, subject to regulatory approval.

“We just had approval in Vermont, and we’re waiting for approval in Massachusetts,“ Keysar said. “You can’t merge a mutual. You can only affiliate. So we’ll be affiliating with Norfolk & Dedham and pooling our financials. We’ll remain regional.“

[After publication of this article in the November issue of VermontBiz, the two firms received final permission from Massachusetts regulators to affiliate. See story HERE.]

AM Best, the global rating agency for the insurance industry, has affirmed the rating of the Union Mutual of Vermont Companies as “A“ (excellent) with a stable outlook. Same for N&D.

“We compete against the bigger stock companies, like Travelers, Hartford, Liberty Mutual, Safeco and similar companies,“ Keysar said. “A lot of our agents have those stock companies in their agency. So we’re competing against regionals as well as stock companies.“

The death of Nobles at 50 was shocking for the company, according to Rob Miller, president and chief operating officer of EastRise Credit Union (formerly NEFCU and VSECU, which merged in 2023), who sits on the Union Mutual board.

“It was devastating,“ Miller said. “It’s a very close-knit organization. Everyone supports everyone. Everyone knows one another. Many of the employees there live in the same towns and see each other on the weekends.

He credits Keysar’s “calmness and empathy“ with helping the organization navigate the loss.

“We were in the middle of COVID (at the time of Nobles’ death), which was a crisis in and of itself,“ Miller said. “There has been flooding to downtown Montpelier and across the region that they’ve also had to navigate. So it’s been quite a five years for her. She spends the time to listen and understand the needs of her people, and she leads the organization in a way that puts people first.“

Keysar’s concern for her employees is especially admirable, Miller said.

“She knows her employees, and I think they feel that,“ Miller said. “She’s got great empathy for what it’s like to be an employee at Union Mutual, no matter what the department. She’s a very warm person who cares about the company culture. And I think they feel that too.“

Almost all of Keysar’s career has been spent with Union Mutual, according to Kathy Davis, an attorney who chairs the Union Mutual Board of Directors.

“She’s worked in almost every department, and that’s kind of unusual,“ Davis said. “Most CEOs have never worked, for example, in customer service. And she has a tremendous marketing background as well. This is a business that we distribute through agencies. So it’s very important that you maintain excellent relationships with all the insurance agencies that we do business with. And Lisa knows them. She’s part of that network because of the variety of positions she’s held at Union Mutual, including marketing. She’s just the ideal person at the ideal time to be our CEO.“

Keysar believes in the independent agency model.

“I think it’s a good model, because a lot of times people don’t understand what they need for insurance,“ Keysar said “So, having an agent who can walk them through what they need is better. You hope that you’re covered appropriately, but when something happens, you want to be certain.“

Union Mutual is thriving.  As of August, the company projected $252.66 million in direct written premiums and a surplus of $134.4 million for the year. With over 100 employees, Union Mutual is a significant player in the insurance industry.

Photo: 2024 Corporate Cup team photos. Photos courtesy of Union Mutual.

With climate change increasing the prevalence of hurricanes, floods and wildfires, Americans and insurance companies alike are paying closer attention to weather forecasts. Union Mutual offers flood insurance through the Federal Emergency Management Agency’s National Flood Insurance Program. Since most homeowner and business owner policies exclude flood damage, a separate policy is usually necessary.

“If it’s someone’s home, they have flood insurance that’s paid through the federal government,“ Keysar said. “The only time that we would pay is if your car was flooded, because that’s covered under your auto policy.

“Our building was also affected during the flooding. We had 4 feet of water in our basement. So clearly, we were affected as much as the downtown in Montpelier was. We were fortunate, because on this end of State Street we have a little higher elevation. So it just affected our basement, but we were able to recover from it fairly well.“

In a state as weather-driven as Vermont, almost anything can happen.

“We have ice storms, snow and freeze-ups,“ Davis said. “We also have fires. One large fire can ruin an entire year. I remember years ago when we had a $6 million loss in Springfield, Massachusetts, due to a fire. Cold weather brings power outages and accidents. Aside from the horrible flooding throughout the state, 2024 has been relatively mild; we haven’t had the usual ice storms, blizzards or cold snaps. Those are things you can’t control.“

Still, insurance makes the world go around, Davis said.

“Without insurance, you can’t get a mortgage“ she explained. “It’s just a very important industry. I joke with young lawyers about people thinking that all the money is in the big banks. It’s not. It’s in the big insurance companies, because it takes a lot of money to reserve for these unforeseen accidents and losses that insurance is intended to pay for.“

Sophisticated insurance buyers acquire a variety of insurance products to protect themselves against all kinds of losses, including environmental and liability losses, Davis said.

“Without insurance, business really couldn’t operate,“ Davis said. “It’s a risk transfer mechanism, and financially, it really keeps businesses going when things get tough.“

Even insurance companies need insurance, Davis pointed out.

“We buy from the reinsurance market,“ Davis said. “In the event of a horrible storm — for example, the ice storm back in the late ’90s — all the power lines in Quebec went down and we all lost power for days down here. To protect against those catastrophic-type losses, Union Mutual purchases reinsurance from the commercial reinsurance market. So, yes, insurance companies do buy insurance. We call it reinsurance. There’s a lot of legal work involved in documenting those transactions and protecting policyholders.“

Davis emphasized Keysar’s significant contributions to Union Mutual’s positive work environment.

“We’ve got a great company culture,“ she said. “The employees are innovative, and they look to her as a great leader. Lisa’s very intelligent. She’s very innovative. She’s very involved, for example, in internship programs to bring young people into the insurance business. Finding and retaining new employees, no matter where you are — but particularly in central Vermont — is difficult. That’s an area she excels in and has been very successful in developing. I would call that very innovative and forward thinking, and it certainly contributes to the success of the company.“

Davis emphasized Keysar’s direct communication style as another key strength.

“She doesn’t play games,“ Davis said. “She calls it like she sees it. And you always know what she’s thinking. That’s very important.“

According to Davis, Keysar played a key role in facilitating a smooth transition back to the office following months of remote work prompted by the pandemic.

“People got used to working remotely,“ she said. “But most of us think it’s very important for employees to come into the office to collaborate with each other, learn from each other and just talk with each other in person. Lisa’s been very active to make sure that employees are comfortable no matter where they work, but with a focus of trying to get that collaborative feeling back by bringing people back to the office.“

William T. Burns, a second-generation insurance agent who owns a chain of small insurance companies in southern Vermont,  is a prime example of the strong relationships Keysar cultivates with those selling Union Mutual products. Their connection began when Burns explored adding Union Mutual products to his portfolio.

“One of the amazing things about Lisa is that she takes an active role in knowing her principals,“ Burns told me. “She understands what your market is and looks to see what Union Mutual can do to partner with the agency.“

Burns emphasized the importance of shared values in his company’s partnership with Union Mutual, explaining that they seek carriers whose interests align with their own.

“From an agency level, it’s a relationship-based business,“ he said. “If you were a customer, you would be coming to me not just for price. You’re coming for who the carrier is, for the relationship and the trust in knowing that I’m there to help you take care of your account, to make sure you’re insured properly.

He continued, “That also goes forward with an agency. We want to partner with a carrier that puts our best interest and our clients’ best interests first. And that’s where Lisa, as a leader, comes in. You’re selling something that, let’s face it, the majority of the people don’t understand or don’t like. So Lisa wants to have a relationship with her agency force.“

Burns stressed the importance of understanding the nuances of the insurance business, explaining that Keysar and her staff take an active role in getting to know their agencies, understanding the local market pressures and supporting their success, regardless of their size. He highlighted the multilayered nature of an insurance company, from the CEO “steering the ship“ to the various departments handling claims, underwriting and policy services.

This collaborative approach, Burns explained, fosters a strong sense of partnership and trust, ensuring that everyone is on the same page and working together as a team. He likened this approach to the way insurance was conducted generations ago, built on handshakes and personal relationships. However, he acknowledged that today’s market, with its fluctuating weather patterns, rising repair costs and increasing liability suits, presents new challenges.

Strong relationships, he said, are essential to navigate these complexities and ensure that customers have confidence in their insurance agency’s ability to partner with solid and financially stable carriers.

This is the way insurance has been done for generations, Burns said.

“It was the way my father did business, and it was the way the companies did business 50 years ago, back when people did things on a handshake,“ Burns said. “With the changes in the weather patterns and the market, it’s hard today to actually write profitable business insurance priced at the right number for what’s happening with losses, or the increased cost to make repairs to a home or a business, or the liability suits on a slip-and-fall. So the relationship establishes that everyone is on the same page, that we’re working together as a team.“

Burns explained that customers want assurance that their insurance agency maintains strong relationships with reliable and financially sound carriers. They want confidence that the carriers can fulfill their claims obligations and demonstrate stability, particularly through consistent rates that remain relatively level even during challenging times.

What especially impresses Burns about Keysar is the successful way she functions in what remains, essentially, a man’s world.

“Not everybody can take on the role of being a CEO of a major insurance company based in Vermont,“ Burns said. “It’s always been men, but primarily executive teams in our industry. Growing up in the business with my father, he was always dealing with men in those roles.

“If Lisa walks into a room of 100 CEOs, I’m willing to bet 95 of them are men. Not just anybody can do that. But Lisa can. She impresses me over and over when I think about the position she’s put herself in and the way she took it on. She deserves it, and she earns it and she can do it.“

As the father of a daughter himself, Burns is especially proud of Keysar’s ability to be a role model for women.

“I want to see that more and more for women,“ he said. “She’s right out there, and she’s really going to stand out in our little state of Vermont for years to come because of the example she set that a woman can do the job. Being a CEO takes a strong personality — someone who’s assertive, who’s confident, who’s willing to step up and represent in a really tough business. All those things describe Lisa. She’s not afraid to take on whatever challenges are put in front of her.“

Burns emphasized Keysar’s approachable nature, noting that he feels comfortable enough to greet her with a hug when she visits his office.

“I’ve known her for years before she got in this role, and that says something about the relationship,“ Burns said.

Burns stressed Keysar’s commitment to staying connected with her agents, even those from smaller agencies like his own in southwestern Vermont. He appreciates her desire to maintain a pulse on developments across the state and her genuine interest in him and his staff.

“It trickles down, making me want to be successful, making me educate myself more on what’s going on in the industry, what the market is, where the losses are happening, understanding the pricing and what insurance companies go through — so I can explain it to my customer,“ he said.

Jeffrey Turnbaugh, president of the Turnbaugh Insurance Agency in Williston, described a decades-long professional relationship with Keysar. He believes Union Mutual’s primary strength lies in its dedication to its network of independent community agents.

“There are different means of distribution for insurance products,“ Turnbaugh said. “There are direct writers who might be online. That would be like an Amica, where in order to purchase a policy you need to log into their internet portal. There are captives, like Allstate or State Farm, where they have an agency plant but Allstate or State Farm is the only company that those agents represent. The independent agent channels are typically set up almost like a broker network. As an independent agent, I represent 12 different carriers. And there are independent agencies out there that represent 20, 30, 40 or 50 different carriers, depending on their volume and their size. That said, Union Mutual has been very committed to their distribution hub, their independent agencies. That is number one.“

Turnbaugh observed that some larger, stockholder-owned companies are becoming more competitive within the independent agent channel. He cited Progressive as an example, highlighting their dual distribution model, which includes both a traditional independent agent network and a direct-to-consumer online platform.

“Union Mutual has fought off that,“ Turnbaugh said. “They’ve stayed committed to their agents and solely distribute their products to their independent agent network. That’s very appealing and is a very strong commitment if you’re an agency owner.“

Union Mutual is small enough that its staff is easily reachable, Turnbaugh said.

“If you’re with a larger company, like a Travelers or a Liberty Mutual, it’s very difficult for an agency principal to get his voice heard with upper management,“ he explained. “Union Mutual is very accessible. As an independent agency owner, I’ve always had constant access to Lisa as well as to the CFO, the claims vice president and the product vice president. They’re easy to communicate with, and they’re very proactive with keeping their executive committee available for their independent agent partners.“

Turnbaugh explained that the necessary communication can differ depending on the situation. For instance, a large claim might require intervention if the agency feels it isn’t being handled properly. Alternatively, a coverage discrepancy might necessitate escalation to a manager who can address the issue with the claims adjuster.

Turnbaugh has 12 carriers, so he is seeing market changes by way of the products that are rolling out with other carriers. Union Mutual’s product development team listens to its agents, giving him a voice in new products.

“We can say, ’Hey, listen, this is what we’re seeing trending in the industry. This might be something that would be a great avenue for Union Mutual to explore as an endorsement bundle,’“ Turnbaugh said. “It’s difficult to talk to a larger stock carrier about those changes in the marketplace. Or we might just see other things that would enhance our ability to deliver and sell products. So being able to talk to product development specialists or vice presidents and get that in front of them so it’s tabled and discussed is important.“

Turnbaugh noted the value of Union Mutual’s robust agency council, where members elected from different demographics provide representation and feedback.

Photo: Union Mutual  Group photo at the Summer Employee Outing. Photo courtesy of Union Mutual.

“If I’m on that agency council, I would talk to the constituents, who are other agency owners, and then take this to a two- or three-day meeting, where a lot of these things are round-tabled,“ Turnbaugh said. “A lot of these discussions turn into meaningful change. Union Mutual is very open to listening to things that their agency plan may need. It might be automation, updates, product delivery enhancements, underwriting guidelines or product. For a smaller carrier, Union Mutual has been very committed to their agency council and instituted a lot of meaningful changes over the years at the advice of that council.“

In all of these aspects, Keysar offers strong leadership, Turnbaugh said.

“She makes very decisive decisions and stands by those decisions,“ he said. “But I think those decisions are very well-educated decisions. Lisa’s not one to rush into any one particular area or topic — not in her personal life or her professional life. She’s very methodical about the decisions she makes and stands strongly behind them when they’re made.“

Keysar empowers her employees to challenge her ideas when they have alternative perspectives to offer, Turnbaugh said.

“I think she sees that as a growth opportunity, not only for her employees but also for herself,“ Turnbaugh said. “She’s constantly listening to the input of her executive team and, quite frankly, probably every employee at Union Mutual.

Turnbaugh shared an anecdote about his son’s experience working at Union Mutual as a data analyst. He recounted how impressed his son was with Keysar’s clear communication style and her openness to employee feedback, both in individual and group settings.

“I think she understands that good growth comes from allowing your employees to be innovative and bring ideas to the table,“ Turnbaugh said.

Photo: Union Mutual employees today (with Lisa Keysar), and in 1989 (with Keysar’s father, Jack McLaughlin). Photos courtesy of Union Mutual

Early Life

Born in New Jersey, Keysar arrived in Vermont at just 6 months old when her father, Jack McLaughlin, relocated to work for Union Mutual. She has an older brother, Jeff, who recently retired from Union Mutual after 28 years.

With both her father and brother having worked at Union Mutual for a combined total of 56 years, it’s safe to say that the influence of insurance was deeply ingrained in Keysar’s upbringing. Her mother, however, pursued a different path as an X-ray technician, first in a hospital setting and later in a private practice.

Keysar said the most important lesson she learned from her father was to “pay yourself first.

“My father was a very good saver,“ she said,“ and he taught me how to save. At Union Mutual, we have very good benefits. But if an employee isn’t saving, we try to save for them. My father was very smart like that.“

Someone who knew the family well is Keysar’s lifelong best friend, Karen Zecchinelli, co-owner of the popular Wayside Diner in Montpelier. As young women, the two were maids of honor at each other’s weddings.

“All through high school and some through college, we would go to Jack and Bev’s house and hang out by the pool,“ Zecchinelli told me. “They were so much fun and very accommodating to any guests. And they were very supportive of both of their kids in whatever they wanted to do.“

Turnbaugh, who also knew the family well, described Keysar’s father as “a dynamic, forward-thinking person.

“Jack was one of those individuals that saw the future of insurance in a small state like Vermont, and then saw the benefit to Union Mutual’s place in it,“ Turnbaugh said. “He was just an amazing visionary. He took that vision, which he had as a marketing rep, and helped grow Union Mutual into the company that his daughter has now inherited, so to speak.“

McLaughlin recognized the key to success was the ability to offer a range of essential insurance products locally, including homeowners, auto and small commercial packages.

“He realized it makes sense for you, as a Vermont agent, to keep that business with a small mutual company doing business here in Vermont, keeping the money local and giving us the ability to develop products that compete with national carriers,“ Turnbaugh said. “He brought Union Mutual to a level that gave them a lot of sustainable growth.“

Keysar grew up in her father’s business.

“My father started so early, I pretty much feel like I worked at the company for all the time that he was there,“ she said. “I used to see all the board members. And my parents would have people over at the house. So I kind of felt like I worked at Union Mutual for all that time. I interned here when I was 16.“

Jack McLaughlin was a hard worker who taught his daughter to be the same. When Keysar joined Union Mutual in 1995, she intended to stay for just six weeks to work on a project. Thirty years later, she’s still on the job.

“When you work at a company where your parent is the president and CEO, you have to show that you’re really here to do the work,“ Keysar said. “So, I’d say I have a pretty hard work ethic.“

It wasn’t all work, however.

“My father said, ’You’re going to work the rest of your life, so enjoy the summer a little bit,’“ Keysar recalled. “So, I worked at a camp on Lake Morey and then at a Girl Scout camp. I only worked at Union Mutual that one summer. My intention was not to work there full time.“

Keysar followed her brother to Lyndon State College and intended to stay in the area after she graduated. Then she met her future husband, Bradford, who worked for Union Mutual for 20 years. They bought a house in Barre City before moving to Burlington 13 years ago. They have a daughter, now married and living outside of Nashville, Tennessee.

Keysar explained, “When I got out of college, I worked at National Life for six years, and then I had a daughter and decided to be a stay-at-home mom. I stayed at home for five years. Then my father asked me to come in to help out on something, and I never left.“

Keysar’s father died in 2005 after suffering a heart attack on the way to Union Mutual’s company Christmas party.

“It was tough,“ Keysar said. “But people gave me the opportunity to get through the next phase. I took three months off to get myself refocused.“

Career Paths

Keysar started at the company in 1995 as an executive assistant. Working under her father’s successor, she created a customer support department.

“Someone gave me the ability to take a year and a half and figure out how to bring all our support functions into one department,“ Keysar said. “And then I managed that department.“

Since that time, Keysar has held numerous roles at the company, including leadership positions in underwriting, claims, marketing and customer support. She also has served as corporate secretary. This insight inspired the creation of a two-year employee development program designed to give employees a similar breadth of experience.

“Employees can either step away from their current role or new college graduates can join,“ she explained. “They rotate through various departments, spending six months in underwriting, six months in marketing and shorter periods in other areas. This provides a well-rounded understanding of the company’s different facets.“

She emphasized that the insurance industry encompasses far more than just selling policies.

“We have a marketing department, an analytics department, an IT department, accounting, and claims,“ she noted. “There are many diverse opportunities for people to contribute to the company.“

A dozen or so employees have gone through this program, Keysar said.

“And almost to a dime, every employee ended up in a different department after they went through the program,“ Keysar said. “So, you may come in under customer support but then realize you’re really good at accounting, and that’s where you want to land. We spend a lot of time on development, trying to give employees different opportunities. That’s kind of my story. I was given a lot of opportunities throughout my career to grow and learn about the company. And so, in 2020, that was the reason I ended up in this position.“

Mentorship is a very important part of the job, Keysar said.

“I’ve done a few speeches for leadership classes, and one of the things that I always tell employees is that every time that there was a fork in the road in my career at Union Mutual, I had a really good mentor who was my supervisor,“ she said. “I always went to them and said, ’You know, I’m feeling like I either want to leave or I want to change positions. And I had really strong mentors who said, ’We may not be able to get you that now, but if we work towards it in the next few years, we can do that’.“

That is why her advice to new employees is to find a good mentor. And she takes an active role in helping them.

“We have a program here at Union Mutual, that when an employee starts, we connect them with a mentor,“ Keysar said. “It’s someone that they don’t normally work with on a day-to-day basis. It helps them start their career at Union Mutual, and we’ve found it to be very helpful.“

Of course, no one gets a smooth ride to the top; even for Keysar there have been difficulties along the way.

“I’ve had points in my career where communication was an issue,“ she said. “Maybe I was too transparent or not transparent enough in communication. I don’t think of it as a mistake, but there are a lot of times where decisions are made and the communication to employees is maybe not at the right time, or I don’t give employees enough time to understand what we’re doing.“

Climate Change

The changing climate has impacted nearly everyone, with once-rare weather events becoming increasingly common.  The Carolinas, for example, are now experiencing storms that rival those historically associated with vulnerable areas like Miami Beach. Given the insurance industry’s direct exposure to the effects of climate change, Keysar offered her perspective on this evolving landscape.

“Well, we’re certainly seeing the wind,“ Keysar said. “We’re seeing summer storms that we didn’t used to see. There was that polar vortex last year where we experienced 30 hours of subzero weather. We saw a ton of freeze-up losses from that. It was a big event for us.“

While winter weather was once the primary concern for insurers, the changing climate has brought new challenges.

“We used to focus on winter-related losses like snow and freeze-ups,“ Keysar explained. “But now, severe convective storms are becoming increasingly common throughout the United States.“

These localized, short-lived storms, characterized by intense updrafts and downdrafts within convective cloud systems, are creating new risks for insurers and communities alike.

Keysar noted an increase in hailstorms in the Midwest, events typically outside their coverage area.

“We’re observing a significant increase in atmospheric moisture,“ she remarked, highlighting the broader implications of these changing weather patterns.

This increased moisture poses a growing risk for Vermonters, many of whom live near rivers and streams that are becoming increasingly prone to flooding.

“Knock on wood, this year has been a little bit quieter,“ Keysar said. “However, the business we’re in is to cover risk. So when I talk about reinsurance, it is something that we always want to make sure that we’re able to cover. That’s what our promise is, and that’s what insurance is about. It’s really a promise until you actually have a claim.“

When facing climate change, reinsurance is as important as it is reassuring.

“It’s insurance that you buy that covers you, based on what premium you have and your surplus,“ Keysar said. “You don’t want to expose your surplus to an event. So you buy reinsurance to cover that. If you say, ’OK, we can retain $15 million in loss,’ the rest of that would be paid through reinsurance. So you’re protecting your assets through reinsurance.“

If a company does not need to use its reinsurance, it has still paid for it. That is how reinsurers make their money.

“We saw, in 2023, a huge correction in the reinsurance market because of all these events that are happening, whether it’s wildfires or convective storms,“ Keysar said. “So the reinsurance market adjusted with about a 40% increase in rates in 2023. That’s why you’ll hear people saying, ’My auto insurance went up’ or ’My homeowners insurance went up.’ It’s because of all the costs. We’re highly regulated, so any rate changes have to be filed with each state. You have to actuarially prove the rate that you want is the rate that you need to cover those claims.“

The Future

Union Mutual’s future, and to a significant extent Keysar’s own trajectory, is intertwined with the proposed affiliation with N&D.  Pending regulatory approval, this affiliation would dramatically increase Union Mutual’s financial strength, pooling resources to elevate the combined surplus from $130 million to just under $600 million.

A release detailed that the newly affiliated group will offer a balanced portfolio of personal and commercial lines business across eight states, with approximately $596 million in direct written premium and over $580 million in policyholder surplus. The group will comprise approximately 250 employees and 600 independent agents operating from 1,000 agency offices throughout the Northeast.

Both companies will retain their existing brands and respective market focuses. N&D will maintain its headquarters in Dedham, Massachusetts, where it was founded in 1825, while Union Mutual will continue to operate from its headquarters in Montpelier, where it is celebrating its 150th anniversary this year.

“I think this affiliation is going to keep me fairly busy over the next couple of years,“ Keysar said. “We started on it in 2022, but did not announce it until last April. We’re staying regional. We’ll still be in Vermont as Union, Mutual, but we will be a larger company than we were in the past. We’re now looking at the synergies of being two companies together.“

Keysar and Joel P. Murray, the CEO and president of N&D, will remain heads of their respective organizations. The two have known each other for 20 years.

The affiliation will establish a new board of directors to oversee the combined companies. This board will consist of eight members from the N&D companies and four members from the Union companies. This 8:4 ratio has triggered regulatory scrutiny in Vermont and Massachusetts, as it constitutes a “change in control“ under state regulations.

Each of the 12 individuals comprising the new group of directors will be equally “in control“ of (have a vote regarding) the business of each of the affiliated companies. While the boards have ultimate decision-making authority for the companies, the day-to-day decisions about staffing and managing the companies will remain with local leadership.

What does N&D have to gain from affiliating with Union Mutual?

“They’re concentrated in only two states, technically,“ Keysar said. “They’ve got a little bit of book in New Hampshire, but they have Massachusetts and New Jersey. So they’re very concentrated, whereas with us together, our footprint is much bigger. It’s all of New England and New York, and because there’s more capital surplus, it allows us to grow. And from their perspective, the risk concentration is now bigger. Let’s say you have a storm just local to Massachusetts. It would be a lot for them. So for both of us, it makes us bigger companies together.“

Keysar said the affiliation will also afford growth opportunities for the staff.

“The insurance industry is not great about bringing younger people into the industry,“ Keysar said. “We put a lot of focus on that. There will be a lot of opportunities at this sized company. We have to make sure that we’re continuing to grow the staff.“

Keysar said her favorite part of working in the insurance business is the strong relationships she has made.

“My father used to tell me that Union Mutual is here for two reasons,“ she said. “One is to pay claims, and the other is have a nice place for employees to work.

“Certainly, we have some very tenured staff Our longest-serving employee retired last year after 49 years. We have 16 employees who have been with the company more than 25 years. People really consider this a good place to work. Many of the agents that we work with are close friends. After being in the business for 30 years, you start to really build up those relationships.“

And her least favorite part of the job?

“The weather,“ Keysar said. “I used to enjoy snow. Now you worry about it. I think when people start here, they don’t realize how much weather affects what we do. You’re always concerned about what’s going to happen next. We’re here for people to take the risk. But when you see these hurricanes down in the Gulf Coast, it makes you nervous.“
 

Joyce Marcel is a journalist in southern Vermont. In 2024, she was named the best business magazine profile writer in the country by the Alliance of Area Business Publishers. She is married to Randy Holhut, the news editor/acting operations manager of The Commons, a weekly newspaper in Brattleboro.

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