Message from the CEO

When we first opened our doors in 1995, many businesses throughout the state were unable to find a reliable source for workers’ compensation insurance coverage. KEMI entered the marketplace with a $7 million start-up loan and a clear mission: to serve Kentucky businesses as a competitive mutual insurance company and to bring stability to the workers’ compensation insurance market.

We paid back the loan one year later, and by 1997 we became the largest workers’ compensation insurance carrier in the state with over 18,000 policyholders. We achieved this early success by employing sound underwriting principles, effective claims management, and responsive customer service, and those values are just as important to us today as they were when we wrote our first policy.

In 2017, KEMI had over 23,000 policyholders in all 120 counties throughout Kentucky. In addition to being the largest provider of workers’ compensation insurance in the state, we also maintained a rating of A- (Excellent) by A.M. Best for our financial stability.

This rating significantly strengthens KEMI’s ability to compete with other insurance carriers and provides peace of mind to both agents and policyholders that KEMI will be here to fulfill our promise now and in the future. Not only does KEMI provide a reliable source of coverage for all Kentucky businesses who choose us, but our strong financial position and competitive nature have proven to be vitally important to the continued stability of Kentucky's workers' compensation insurance market even in recent years.

Loss Portfolio Transfers
In July 2017, KEMI completed a Loss Portfolio Transfer with the Kentucky Coal Workers’ Pneumoconiosis Fund (CWP). By accepting this responsibility, the special fund assessment charged to coal companies was reduced from 49.5% of workers’ compensation premium and $0.4174 per ton of severed coal to 14% of premium and $0.15 per severed ton. This agreement provided a significant amount of savings to coal companies across the Commonwealth while ensuring the state black lung benefits paid to miners were not affected.

This was not the first time KEMI stepped in to help. In 2014, KEMI accepted $37 million in claims liabilities for the Kentucky School Board Insurance Trust (KSBIT).

KEMI’s willingness to manage both loss portfolio transfers at break-even cost estimates resulted in improved service to injured workers and significant savings for both coal companies and school districts throughout Kentucky.

Retirement Plan Savings
Due to rising costs associated with the state pension fund, KEMI ceased participation with Kentucky Retirement Systems (KRS) effective June 30, 2016. As a result of this change, I am pleased to report that KEMI realized substantial retirement plan savings in 2016 of $3.2 million and $5.4 million in 2017.

KEMI in the Community
6,169. In 2017, KEMI had over 6,000 individuals participate in one of the 220 safety training classes we offered.

1,724. That’s the number of Volunteer Hours our employees spent representing KEMI in the community in 2017, and it’s just one of the numbers that demonstrates how much we care about making a difference where we work and live.

From swinging a hammer on a Habitat for Humanity build site to baking unforgettable birthday cakes for children living in poverty, I’m so encouraged by the creative ways our people served others this past year. I invite you to take a few minutes and check out Our Impact page to learn more about how KEMI is investing in our community through safety training and volunteer service.

Our employees are passionate about living out the motto to Work safe. Serve others. We'd love to have you join us in the effort.


Jon E. Stewart
President & CEO