History-sm

KEMI Pays Off Loan from the
Funding Commission
KEMI’s 1995 annual report predicted that the organization
would become the dominant force in Kentucky workers’
compensation insurance in 1996 and take a leadership
role in encouraging actions which improve the system
and provide better, more affordable service to all
employers, large and small. Demonstrating commitment
to this prediction in a manner directly related to KEMI,
in the spring of 1996 Roger Fries recommended to the
board that they repay the $7 million start-up loan that
was provided by the Kentucky Workers’ Compensation
Funding Commission. Although the terms of the loan
allowed re-payment through October 2001, according
to KEMI’s Vice President of Finance, early payoff made
good business sense. He stated, “At the current interest
rate we’re (KEMI)
paying the Funding
Commission, we
would have sunk
over $2.2 million
into interest
payments by
the year 2001.
Policyholders are
much better served
over the long term
by putting that
money to work
instead of paying
it out.” Payoff of
the loan six years
early was a huge
relief and a significant statement to the community about
the viability of KEMI and its future success.
The KEMI Philosophy on Customer Service
The KEMI philosophy of customer service has been
a core component of the organization’s corporate
strategy and culture. Early in the company’s history,
priority was placed on interaction with customers and
developing service standards they had not previously
known; these standards were defined as employee
values, representing the commitment of the KEMI staff.
To this day they continue to be deeply embedded in
KEMI’s operations:
We will reflect integrity in all that we do by making
decisions that are ethical and in accordance with statutory
requirements and KEMI operating policies.
We understand that communication and teamwork within
our organization are essential to resolving all issues.
We will educate our customers about, and involve our
customers in, decisions that affect their relationship with
KEMI.
We will listen to our customers and treat them with honesty
and respect.
We will understand
and address our
customers’ needs
while providing
them prompt and
responsive service.
We recognize that
our decisions will
not always meet
with the approval
of all customers we
serve.
We take pride in
being a dependable
and respected resource for Kentucky employers.
We believe that our customers’ satisfaction is a key measure
of our success.
After one year of serving policyholders, Roger Fries
issued a special note of thanks and appreciation to
each and every member of the KEMI team. “We have
been extraordinarily successful during this first year
and every measure of that success can be attributed to
your hard work, initiative, and dedication to excellent
customer service,” wrote Roger. “What sets us apart,
and will continue to make a significant contribution to our
success, is your unrelenting drive to make things better –
for the company and for our policyholders.”
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