MEMIC - Maine Employers' Mutual Insurance Company (MEMIC) is a private mutual insurance company which opened for business in January 1993. MEMIC was, and remains, the keystone to the landmark 1992 reforms of Maine workers' compensation law passed by the Maine Legislature and signed by then-Gov. John R. McKernan.

Among other reforms, this legislation called for the creation of MEMIC as a private company that would serve as the guarantor of workers' compensation insurance for Maine companies. With its private structure, MEMIC serves as a competitive force within the workers' compensation insurance market.

At its formation, the company's board of incorporators set out to form a different kind of insurance company. Their philosophy of injury prevention engendered the creation of a company dedicated to workplace safety as well as compassionate care for injured workers. In that vein, MEMIC's founders stressed the creation of an environment where employers and employees would work together to help reduce injuries, control costs and improve treatment.

When MEMIC opened its doors in 1993, it was one of fewer than 10 companies who were licensed to sell workers' compensation insurance in Maine. Injury rates were high and the workers' compensation costs were the nation's highest.

By creating an independent safety department, which stressed safety training, as well as launching its ongoing "Partnership for Workplace Safety" public awareness campaign, MEMIC helped lead the way to cultural change in Maine's workplaces.

The company's treatment of injured workers is another company hallmark. By working to resolve disputes between employers and employees and by assuring appropriate medical care for injured workers, the company has become a leader in the area of injury management.

Since MEMIC's formation in 1993, lost-time injuries in its home state have been reduced by about 30 percent. The overall cost of insurance has been reduced by more than a third. And, despite the fact that more than 100 insurance companies are now licensed in the competitive Maine market, MEMIC has remained the leader. It insures about 70 percent of Maine's insured businesses. As the key component of Maine's 1992 workers' compensation reforms, MEMIC has been the model for other states seeking to replicate its successes.

The company is a financial success as well. At its inception, it was allowed to collect a unique capitalization fee from its policyholders. It was given 10 years to accumulate adequate capital but ended the fee after just five years, collecting million. And, while the company was under no obligation to return this capital, in 1998 it began returning this capital to its policyholders. By 2001, MEMIC had returned the entire amount to all eligible policyholders.

MEMIC's success has earned it accolades from a host of organizations. MEMIC has been recognized with the Masterton Award for Economic Development by the Greater Portland Chamber of Commerce and with the Navigator Award as the state's top large business by the Maine State Chamber of Commerce. The company is also a proud winner of the Eagle Feather Award for social responsibility from Maine Businesses for Social Responsibility.

The company continues to grow today. In 2000 the MEMIC formed MEMIC Indemnity Company, a subsidiary based in Manchester, NH. Today, MEMIC Indemnity Company is licensed to serve employers in New Hampshire, Vermont, Massachusetts, Connecticut, and New York.

In May 2000, MEMIC sought, and received its first ever rating from A.M. Best. MEMIC earned an A (Excellent), a rating it continues to maintain. In 2002 and in 2003, the company was once again recognized for its financial strength and performance by the Ward Group, a respected insurance consulting firm. For two years running, MEMIC was included in the Ward 50, a listing of the top 50 insurers in the property and casualty line of insurance. The ranking put MEMIC among the top 2 percent of insurers in North America.

For more information about MEMIC's history, including an in-depth a publication titled "MEMIC: A Maine Miracle – The Success of the Maine Wokers' Compensation Reforms", contact Michael Bourque at MEMIC at (207) 791-3314 or by e-mail at mbourque@memic.com.