Outlook: Business & Economic Development

MEMIC makes workplace safety pay

The Maine Employers’ Mutual Insurance Co. (MEMIC) is located at 261 Commercial St., Portland. MEMIC provides workers' compensation insurance coverage for many Maine employers.
Courtesy Photo
The Maine Employers’ Mutual Insurance Co. (MEMIC) is located at 261 Commercial St., Portland. MEMIC provides workers' compensation insurance coverage for many Maine employers.
Posted March 13, 2014, at 1:59 p.m.
A construction worker wears a safety harness while employed at a job site in Maine. The workers' compensation insurance coverage carried by his employer is provided by the Maine Employers’ Mutual Insurance Company (MEMIC).
Courtesy Photo
A construction worker wears a safety harness while employed at a job site in Maine. The workers' compensation insurance coverage carried by his employer is provided by the Maine Employers’ Mutual Insurance Company (MEMIC).

Financial strength, safety resources, and compassionate claims service are just a few of the reasons why Maine employers choose Maine Employers’ Mutual Insurance Company (MEMIC) for their workers’ compensation insurance coverage.

Another big reason is dividends.

In November 2013, MEMIC returned a record dividend of $16 million that was paid out to nearly 18,000 of the company’s Maine-based policyholders. Since 1998, MEMIC has returned more than $160 million to policyholders and more than $100 million since 2006.

The 2013 dividend payment was based upon MEMIC’s 2010 performance and represented approximately 13 percent of the premium that policyholders paid during that year. The company explains that the record return was made possible in part by employers and employees working together to reduce injuries at work.

And the company’s commitment to keep its expenses lower than the average for property casualty insurance companies, as well as the growth of its subsidiaries outside Maine, also contributed to the record return.

In addition to the dividend, earlier in 2013, MEMIC declined a rate increase that had been filed by the National Council on Compensation Insurance. MEMIC estimated that its policyholders will save several million dollars as a result of the company’s decision to forgo the rate increase.

The 3.9-percent increase resulted from an update to the medical fee schedule for workers’ compensation injuries. While it is unconventional for an insurance company to turn down a rate increase, MEMIC deiced to hold the line in an effort to not add to the burden of Maine business in an already struggling economy and to not impede economic growth in the state.

Again, this is another example of why most Maine employers choose MEMIC.

MEMIC is Maine’s largest and leading workers’ compensation insurer, providing insurance to more than 20,000 employers and their estimated 300,000 employees. Since MEMIC’s inception more than 20 years ago, rates for workers’ compensation in Maine have decreased by more than 50 percent. During that same period, lost-time injuries are down by nearly 40 percent.

 

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