Lexington, KY – Kentucky Employers’ Mutual Insurance (KEMI) recently announced it is issuing a dividend of $8.1 million to eligible policyholders and lowering overall rates by 6.4%. KEMI is also issuing an additional $6.75 million refund to the Kentucky School Boards Insurance Trust Workers’ Compensation Fund (KSBIT), bringing the total returned to those schools over the past two years to $16 million. The dividend, rate reduction, and refund are all a result of proactive management of claims by KEMI and its policyholders.
“Kentucky businesses are facing hardships they’ve never experienced before, but KEMI is committed to being there for our customers in their greatest time of need,” said Jon Stewart, president and chief executive officer of KEMI. “Our policyholders are the driving force behind KEMI’s success, and this dividend and rate reduction is possible because of their trust in us.”
Over 13,000 policyholders will receive a dividend payment from KEMI, and the average check per policyholder is $600. To qualify, policyholders must have a current active policy with KEMI and a loss ratio of less than or equal to 65% for the 2017 policy year. Dividend checks will be printed and mailed by KEMI starting on November 17, 2020.
In addition to the policyholder dividend, KEMI’s board of directors also approved a rate reduction and a refund to KSBIT policyholders.
Once approved by the Kentucky Department of Insurance, the 6.4% overall rate reduction will go into effect on January 1, 2021, and will apply to both new and renewal policies.
For schools throughout Kentucky who were KSBIT policyholders, an additional refund of $6.75 million is on the way following proactive management and improved claims outcomes by KEMI.
KEMI’s History with KSBITe
In 2014, KEMI accepted $35 million in claims liabilities for KSBIT which was lauded by the Kentucky Department of Insurance as the “softest possible landing for Kentucky school districts and injured workers.” KEMI offered schools interest-free loans and planned to handle the claims at cost.
Last year, KEMI worked with the Kentucky Department of Insurance to distribute $4.77 million to KSBIT members.
KEMI is the workers’ comp provider of choice for 137 school districts and provides extensive safety and loss control services to help keep school employees safe.