Kentucky Employers' Mutual Insurance Authority

What Kentucky Employers' Mutual Insurance Authority does

Kentucky Employers' Mutual Insurance Authority (KEMI) is a state-chartered mutual insurance company formed in 1995 and headquartered in Lexington, Kentucky. It is Kentucky's largest provider of workers' compensation insurance, serving more than 20,000 policyholders across all 120 counties of the state. Because KEMI is a mutual, it is owned by its policyholders rather than external shareholders, with surplus funded by premiums and investment income; the company has accumulated over $310 million in policyholder equity as of December 2021 and has returned $123 million in dividends to eligible policyholders between 2010 and 2025.

KEMI's core product is workers' compensation insurance, priced on a payroll, classification-code, and experience-modification basis, and supported by an integrated technology stack that includes separate secure web portals for agents (book-of-business management, commission tracking, ACORD form upload, same-day straight-through processing) and policyholders (policy details, billing history, certificate requests, loss-run generation, claim dashboards). The KEMI Help Center (launched January 2024), the redesigned KEMI.com (December 2021), and a Medcor integration for first-report-of-injury intake (2023) extend the digital service layer beyond core underwriting. Safety and loss-control services are delivered through worksafeky.com and on-site training, complemented by the annual Destiny Award program that recognizes policyholder safety excellence.

KEMI generates revenue through workers' compensation premiums paid by employers, with rates reduced 43% over the past decade and approved by the Kentucky Department of Insurance. Distribution is hybrid: independent insurance agents across Kentucky handle quoting and placement with standard plus enhanced commissions (18% first year / 15% second year) on target class codes, while policyholders self-serve through online portals for policy management, claims reporting, certificate requests, and premium payments. The company maintains an A.M. Best A- (Excellent) financial strength rating for 23+ consecutive years, achieved SOC 2 Type II certification in 2025, and is led by President & CEO Jon Stewart, who sits on the Workers' Compensation Research Institute board, with KEMI employees serving across AASCIF committees.

Name

Kentucky Employers' Mutual Insurance Authority

Legal name

Kentucky Employers' Mutual Insurance Authority

Website

https://kemi.com

Company type

Private

Founded year

1995

Operating status

Operating

Headcount range

101–250 employees

Short description

KEMI is Kentucky's largest workers' compensation insurance provider, a policyholder-owned mutual serving more than 20,000 employers across all 120 Kentucky counties with rate-regulated premiums, agent-channel distribution, and an A.M. Best A- rating.

Ownership category

akta.pro rank

Product category

Workers' Compensation Insurance

NAICS

Direct Insurance (except Life, Health, and Medical) Carriers (52412), Insurance Carriers (5241)

SIC

Insurance Carriers, Nec (6399)

akta.pro primary industry

Self-Insured Workers’ Compensation Programs (FSAJAEAD)

akta.pro secondary industry

Workers’ Compensation Insurance for Staffing/PEO & Contingent Workforce (FSAJAEAE)

Keywords

• Workers compensation insurance
• Mutual insurance
• Claims management
• Workplace safety training
• Policyholder dividends

Headquarters

HQ city

Lexington

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Workers' Compensation Insurance Premiums: KEMI generates revenue through workers' compensation insurance premiums paid by policyholders. Premiums are based on payroll, classification codes, experience modification ratings, and other risk factors. As a mutual insurance company, policyholders effectively own the company and share in its financial success through dividends.
2. Policyholder Dividends: KEMI returns value to eligible policyholders through dividend payments. Dividends are based on proactive claims management and policyholders meeting criteria including active policies and loss ratio thresholds. Over 12,000 policyholders typically receive dividends, representing a 20% return for qualifying policyholders.
3. Agent Commissions: KEMI compensates independent insurance agents through commissions for new business and renewals. Standard commissions apply, with enhanced commissions of 18% first year and 15% second year for target class code policies meeting specific qualifications.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels6 records

Core offering

KEMI provides workers' compensation insurance coverage to Kentucky employers as a state-chartered mutual insurance company, with policyholders in all 120 Kentucky counties. The company pairs these insurance policies with claims management, free safety and loss control services (including on-site and classroom training), and online self-service portals that allow policyholders and independent agents to manage policies, billing, certificates, loss runs, audits, and claims. As a mutual, KEMI is owned by its policyholders and returns surplus through dividend payments.

Product overview

KEMI operates as a workers' compensation insurance provider offering a comprehensive suite of products and services for Kentucky employers. The core offering is workers' compensation insurance, supported by the KEMI Access Portals platform which provides separate interfaces for agents (with dashboard, commission tracking, and application tools) and policyholders (with policy management, claims viewing, and billing features). Additional services include Safety & Loss Control Services available through worksafeky.com, Claims Management capabilities, Online Payment Services, the Destiny Award recognition program, and the KEMI Help Center self-service knowledge base. These products work together to provide end-to-end coverage from policy acquisition through claims handling and safety training.

Differentiator

Problem solved

Functional benefit

Products and services

• Workers' Compensation Insurance Workers' compensation insurance coverage sold to Kentucky employers of all sizes and industries, with policyholders in all 120 counties and more than 20,000 active policies; underwriting is based on payroll, classification codes, and experience modification rating.
• Safety & Loss Control Services Free safety and loss control services including on-site training, classroom training, CPR/first aid certification, OSHA training, and safety program development assistance, available to all Kentucky employers through worksafeky.com.
• Claims Management End-to-end workers' compensation claims handling including incident reporting, medical provider coordination, return-to-work program support, fraud reporting, and Claim Detail Dashboard access for policyholders and agents.
• KEMI Access Portals (Agent Dashboard) Secure online portal for independent insurance agents providing book of business management, commission tracking, application submission with ACORD form upload, contingent commission reporting, policy document access, and alerts management.
• KEMI Access Portals (Policyholder Portal) Secure online portal for policyholders offering policy details, billing history, certificate of insurance requests, coverage poster ordering, audit management, loss run generation, alert management, and claim detail dashboard access.
• Online Payment Services Web-based payment processing that allows KEMI policyholders to pay workers' compensation premiums online via check or credit card through a third-party payment processor.

Quantifiable outcome

• KEMI has reduced rates by 43% over the last decade with an 8.9% overall average decrease effective January 2024
• +4 more outcomes

Named customers13 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Feature4 records

Partnerships

Four partnerships are on record, tiered core and minor.

• American Association of State Compensation Insurance Funds (AASCIF)coreStrategic or Co-development Partner · 1 December 2025KEMI employees serve on AASCIF committees including Communications (Chair), Finance & Investments, Human Resources, Law, National Issues, Policyholder Services/Underwriting, and Safety & Health. AASCIF is an association of workers' compensation insurance companies from 26 states plus eight workers' compensation boards in Canada.
• Workers' Compensation Research Institute (WCRI)coreStrategic or Co-development Partner · 1 January 2025KEMI President & CEO Jon Stewart serves on the WCRI Board of Directors. WCRI is a national research organization focusing on improving workers' compensation systems through objective, high-quality research on public policy issues.
• GallagherminorStrategic or Co-development Partner · 1 January 2025Gallagher conducts annual Benefits Strategy & Benchmarking Survey and recognizes Best-in-Class Employers. KEMI has been recognized multiple years (2021, 2023, 2024) as a Best-in-Class Employer through Gallagher's survey process.
• MedcorcoreTechnology or Integration · 1 November 2023KEMI implemented Medcor system to enhance relationships with policyholders through streamlined incident reporting. Medcor reduces the need to search for details on first report of injury (FROI) and quickly connects claimants with KEMI.

Scale indicators8 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• AIG (American International Group): Global insurer with a significant U.S. workers' compensation book through its Lexington Insurance subsidiary. Competes with KEMI on larger Kentucky accounts; broad incumbent with extensive multi-line offerings beyond WC.
• Travelers Workers' Compensation: Major national P&C insurer with a substantial workers' compensation line. Competes with KEMI for larger Kentucky employers and multi-state accounts while offering broader P&C, auto, and liability coverage — a broader incumbent that overlaps in WC but extends well beyond it.
• Chubb Limited: Large global P&C insurer with a meaningful U.S. workers' compensation offering. Overlaps with KEMI on mid-market and larger Kentucky employers, while also delivering extensive specialty and commercial lines beyond WC.
• Liberty Mutual Insurance: One of the largest U.S. P&C insurers with a major workers' compensation business serving national accounts and large Kentucky employers. Comparable in WC underwriting expertise but at substantially larger scale and with broader product portfolio.

Direct peers

• Zenith Insurance Company: Specialty workers' compensation carrier with mutual holding company structure. Comparable in that both are predominantly WC-focused with strong employer relationships and integrated safety services; Zenith operates in California and other states, KEMI in Kentucky.
• Washington State Department of Labor & Industries: State-run workers' compensation monopoly in Washington that combines insurance, safety, and claims services. Comparable to KEMI as a single-state WC provider with integrated safety and claims capabilities, though larger in scale.
• AF Group (Accident Fund Holdings): Workers' compensation specialty carrier owned by Blue Cross Blue Shield of Michigan. Competes with KEMI in adjacent Midwest/South markets with similar focus on WC-only underwriting, safety services, and policyholder dividends.
• Ohio Bureau of Workers' Compensation: State-funded workers' compensation carrier serving Ohio employers — the closest analog to KEMI in terms of structure (state-chartered, employer-funded mutual) and business model (exclusive WC carrier for a single state). Directly comparable on regulatory model, dividend/surplus distribution, and policyholder ownership.
• State Compensation Insurance Fund (California): California's state-chartered workers' compensation carrier competing with private insurers. Highly comparable mutual/state-fund structure, agent distribution model, and policyholder dividend approach — directly mirrors KEMI's operating model at larger scale.

Others

• AASCIF (American Association of State Compensation Insurance Funds): Industry association of state-chartered workers' compensation carriers across 26 U.S. states. Not a competitor but a directly comparable peer ecosystem — KEMI actively serves on multiple AASCIF committees, and peer funds (e.g., Texas, Florida) operate the same state-fund WC model KEMI exemplifies.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

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M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Kentucky Employers' Mutual Insurance Authority