Burgess is proud to be part of the team that helped found MEMIC, grew it into one of Maine’s leading insurance companies, and in time drastically reduced the injury rate of Maine workers.
Situation
Before the creation of Maine Employers’ Mutual Insurance Company (MEMIC) as part of the Maine Workers’ Compensation Law reforms in 1992, the State of Maine ranked worst in the nation for workers’ compensation costs with an extremely high injury rate and a culture of tolerance for workers’ comp abuse. Burgess had a rare opportunity to work with this mutually owned insurance company just weeks after the Legislature authorized its formation—before it was even officially founded—and help permanently change the workplace culture and the workers’ comp marketplace in Maine.
Marketing Challenge
Burgess was responsible for leading the newly formed MEMIC from its inception as a handful of signatures to a fully-functioning insurance company—and to make it happen as fast as possible. To make matters more difficult, the state’s workers’ compensation insurance market at the time was increasingly dysfunctional, with fewer than two licensed companies. Our task was greater than simply positioning a company against its competition; we were redefining an entire industry and striving to change workplace culture in Maine.
Strategies
Burgess worked with MEMIC to position the company as a partner for both employers and employees by emphasizing the benefits of workplace safety to both audiences. We created a logo and tagline, “Partners for workplace safety,” to embody this commitment. Other tactics included writing newsletters and informational booklets, and representing the company in personal appearances around the state. In 1993, we launched an extensive television, radio, and online advertising campaign with the goal of changing the very culture of Maine workplaces, showing businesses the path to workplace safety through MEMIC’s services. In the absence of significant underwriting competition, our strategy was to create a quasi-public service campaign under the banner of “The Partnership for Workplace Safety.”
- Television commercials delivered messages about the problems with Maine’s workers’ comp system, using CEO John Leonard as a spokesman.
- Radio advertising supported open house events and promoted the early enrollment plan.
Once the company had acquired a substantial base of customers, we created commercials featuring actual employees and employers talking about the benefits of better safety. As MEMIC’s efforts paid off, we developed radio campaigns highlighting the annual dividends paid back to employers.
Results
Our public awareness and customer testimonial campaigns succeeded in positioning MEMIC as
a leader in workplace safety—first in Maine, and later in other states into which the company has expanded. These campaigns helped support MEMIC’s efforts to reduce workplace injuries, which in the first five years alone dropped from 26,000 to 14,000, helping Maine move from 50th (worst) to 34th in workers’ compensation costs.
MEMIC’s success revitalized the workers’ compensation industry, which now has more than 200 licensed competitors in the state of Maine. Despite this impressive industry growth, MEMIC still maintains a health majority of the market share, and has retained its original mutual ownership model, under which the company has returned more than $180 million in dividends to its policyholders since 1995.