Pharmacist Turned Insurer

Following a fire that destroyed his drug store in 1902, Albert Falkenhaier learned firsthand about the difficulties druggists experienced related to securing insurance – loss settlement practices and high premiums. Rebuilding his drug store included more than just the bricks, mortar, and restocking the shelves; Falkenhaier also chartered a mutual insurance company, which would offer policies to pharmacists.

Founded as Druggists Mutual Insurance in 1909 before changing its name in 1992 to Pharmacists Mutual Companies, Pharmacists Mutual’s goal, according to President and CEO Ed Berg, is to meet all of the insurance and financial investment needs of its niche market – pharmacists and pharmacy students. Rated “A” Excellent by A.M. Best, Pharmacists Mutual, headquartered in Algona, Iowa, operates in 46 states.

Pharmacists Mutual offers pharmacist professional liability, auto, home, life, business, and many other types of insurance protection. The Pharmacists Mutual Companies also provides a full range of financial products, information, and services to provide for professional and student pharmacists’ financial future.

“We have three national associations that endorse our products to each of their niche memberships,” said Berg. “We also have endorsement relationships with 34 state pharmacy associations. We also create relationships with all of the pharmacy colleges in our territories.”

Pharmacists Mutual is committed to its niche market as evidenced by its establishment of a pharmacy museum, awarding of scholarships at pharmacy colleges in the states in which it operates, and its sponsorship of the national Distinguished Young Pharmacist Award.

While potential customers tend to consider Pharmacists Mutual first when seeking insurance due to its expertise and understanding of the market, having a high percentage of its business in one niche creates a vulnerability to adverse developments in its customer base, according to Berg. Counteracting this concern is a captive sales force trained in evaluating the unique risks of its niche customers.

“In addition, we have a risk management department that responds to inquiries from customers, sales reps, claims staff, and underwriters,” explained Berg. “We also promote use of a pharmacy quality control program in our independent pharmacy niche.

“Helping our customers attain financial peace of mind is our goal when we come to work each and every day,” added Berg. Staff maintenance and understanding of its pharmacist roots and needs are done through regular customer contact and interaction – including attendance at trade shows and conventions – specialized training, and inclusion of practicing pharmacists on its board of directors.

Serving a specific niche creates a unique relationship for Pharmacists Mutual with its policyholders. “We become very involved in the lives and the business of our niche customers,” said Berg. “Our employees care deeply about taking care of our customers and fulfilling our mission. Our goal has always been to meet all of the insurance and financial investment needs of our niche markets, and to do so in a quality manner and with great personal service. This can only be done through our highly professional and dedicated staff.”

Posted: Tuesday, October 16, 2007 12:00:00 AM. Modified: Tuesday, October 16, 2007 3:34:19 PM.

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.

Contact NAMIC | Press | Advertise | Sponsor

We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.