MEMIC Calls Decrease in Workers' Compensation Rates Great News for Maine Employers
PORTLAND, ME, February 21, 2018 – Michael P. Bourque, president and CEO of The MEMIC Group, Maine’s largest and leading workers’ compensation insurance company, hailed the announcement that effective April 1, employers will pay on average 12 percent less in rates. This is the largest rate reduction in more than 20 years.
MEMIC will adopt the rate recommendation approved by the Maine Bureau of Insurance and submitted by the National Council on Compensation Insurance (NCCI), the national rate making organization that calculates the cost of losses. Maine's Insurance Superintendent Eric Cioppa noted that this represents a cumulative decrease of 59.5% since the 1992 workers' compensation reform (which led to the creation of MEMIC), and with the 12% rate decrease Maine businesses could save $27 million in the following year.
“As we celebrate our 25th year serving Maine, this dramatic decrease in workers’ compensation insurance rates is great news for employers and the Maine economy, said Bourque. “The decrease is testament to the hard and persistent work of policyholders and their employees who have reduced the frequency and severity of work-related injuries here in Maine. I think the hard-won compromises to fix the system 25 years ago have proven their value to all concerned, and we look forward to continuing our mission to provide workplace safety service, fair treatment of all workers and support a strong economy.”
Both Cioppa and Bourque said that the coming reduction of rates is another example of the benefits of safer workplaces and the prompt-return-to-work for those who have recovered from an injury.
“The efforts made by Maine employers and their employees to work safely continues to pay dividends figuratively and literally. This past fall MEMIC distributed $21 million in dividends to Maine policyholders in recognition of superior results and we now have returned more than $240 million back into the Maine economy right where it belongs. This rate reduction is further icing on the cake. In addition to workplace safety, the other essential factors that drove these results are effective management of injuries and a focus on return-to-work strategies,” said Bourque.
Another recent indicator of the system’s success was MEMIC being named the top workers’ compensation insurance company in the country by ACORD, the global standard-setting organization for the insurance industry.
“It was an unexpected honor but affirms that we must be doing a lot of things right. As we insure approximately 60 percent of the employers in Maine who are not self-insured, I’m confident there is a high correlation between our performance and this rate decrease,” said Bourque.
Workers’ compensation insurance pays the medical costs and replacement wages for people injured on the job. Insurance premiums are paid by employers based on the risk of jobs in their workplace. The state mandated line of insurance protects employers from being sued and guarantees that the medical bills and wages of injured workers get paid.
The MEMIC Group includes MEMIC Indemnity Company, MEMIC Casualty Company, and parent company Maine Employers’ Mutual Insurance Company; all rated “A” (Excellent) by A.M. Best. As a super-regional workers’ compensation specialty insurer, The MEMIC Group holds licenses to write workers’ compensation across the country. The group insures more than 20,000 employers and their estimated 300,000 employees, and holds more than $1.3 billion in assets. The group maintains offices in Manchester, NH; Glastonbury, CT; Albany, NY; Weehawken, NJ; West Conshohocken, PA; Tysons Corner, VA; and Tampa, FL; in addition to its headquarters in Portland, ME. The MEMIC Group was honored as the 2018 Workers’ Compensation Insurance Company of the Year by ACORD, the global standard-setting organization for the insurance industry.