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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 <strong>sm</strong>all. 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.” 5
Since the company’s inception, KEMI staff has had an inherent understanding of the “unrelenting drive” Roger referenced in his note and its significance to the organization and the Commonwealth. That drive has been exhibited in dedicated service units like KEMI’s Center for Assistance, in providing customized training courses and materials available free of charge, in the ever-growing and improving online tools available at kemi.com, and in countless behind the scenes efforts that make KEMI more effective and cost efficient for customers. From the beginning, staff understood that there was no difference between the workers’ compensation insurance policy KEMI sold and the workers’ compensation insurance policy sold by any other insurance company. At the very basic level, policies for workers’ comp insurance provide the same protection and benefits no matter whose paper the policy prints on. But KEMI benefited from the early vision of Roger and the board as they recognized that the KEMI policy could stand apart by supporting it with a commitment to financial stability, non-complacency, creativity, and unique strategies for customer service and innovation. One of those strategies came to life in the creation of KEMI.com. Though the initial site did provide some functionality to obtain a quick quote, the majority of the site served as an informational hub for those interested in learning more about KEMI and the services the company provided. Holding true to early commitments to innovation and technology, it wasn’t long before KEMI.com was transformed into a fully interactive site which provides tools for submitting claims and applications, online payments, obtaining loss runs and certificates of insurance, obtaining quotes, and completing audits. Since KEMI.com has become a huge component of how we efficiently serve customers and control expenses, improvements to the site remain under constant consideration by KEMI’s Information Technology and Communications staff, as well as management. Even with the implementation of online services available via KEMI.com, management and employees at KEMI had no intention of sacrificing service values. Recognizing the speed of change and the importance of personal service in an environment that was becoming more and more automated, KEMI created a specialized unit of employees technically proficient in all areas of KEMI’s operations and then empowered them with authority to completely handle inquiries being received by phone and via KEMI.com. KEMI’s Center for Assistance (CFA) began operating before KEMI’s five-year anniversary and has remained one of the most significant units within the company. In a single year, the CFA team handles more than 45,000 calls and responds to more than 7,500 messages sent to answers@kemi.com. 6
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