Leonard Brings No-nonsense Technology Approach To MEMIC

With a no-nonsense approach to technology, John Leonard has helped MEMIC develop an IT operation that has equipped the company for success and growth.

In his personal life, MEMIC president and CEO John Leonard has little interest in the latest tech gadgets. He does, however, take special note of any technology in which functionality isn't exceeded by hype. "I'm not a technology junkie in any sense of the word, but I do embrace technology when it makes sense," Leonard explains.

For example, Leonard describes himself as a sophisticated user of the Internet, e-mail applications and other personal productivity tools. "I've developed self-sufficiency to a point now that I don't have an administrative assistant," he relates. "I just don't need one."

In many ways, Leonard's personal technology philosophy parallels the way he views technology at Portland, Maine-based Maine Employers' Mutual Insurance Co. (MEMIC; $681 million in total assets). "When we talk about technology as a competitive advantage, it's more the enabling process than it is the technology itself," Leonard says. "We're not a gadget company. We're not a company that will buy something because it's attractive or flashy. We are strictly built around the idea of utility."

That technology strategy has served the workers' compensation insurer well since Leonard assumed the CEO role in 1993, the year the company launched. Over the past 10 years, MEMIC has worked hard to develop its core operational systems, which Leonard now proudly describes as "rock solid." More recently, the company introduced productivity enhancements, such as automatic renewals, data warehousing, workflow systems and medical bill repricing. Leonard notes that MEMIC also is set to go live with two major agent interface technology initiatives in the near future.

Overall, though, Leonard identifies an imaging system deployment that has MEMIC working in a virtually paperless environment as the company's key technology milestone in recent years. Though he declines to name the vendor, Leonard says of the imaging system, "The operation at this point is so smooth, particularly if you compare it to the legacy of how we did business back in the early '90s."

Don't confuse Leonard's distaste for the technology hype machine with a lack of technology understanding. Leonard views IT as central to the well-being of MEMIC. "If you take a look at what drives a company, it's really customer service, efficiency and productivity," he explains. "When you take a look at technology, that is the fundamental framework for everything that is produced by an insurance company."

As such, Leonard believes that insurance CEOs would be remiss to delegate too much technology responsibility. While CEOs should not be in the "technology trenches," he says, they should be up to speed with the major technology challenges facing the company and the industry.

For his part, Leonard is heavily involved on the boards of industry groups, including ACORD, where he serves as board chairman, and NCCI, a workers' compensation data aggregator. Both organizations, he notes, have served as critical resources for best practices. "There are operational issues that are under way at ACORD and NCCI that have specific application to what we do here within MEMIC. The ability to export those ideas and concepts, bring them back to the company, and use them effectively is another benefit of participation with these bodies," Leonard explains.

Behind Every Good CEO Is a Strong CIO

Of course, that doesn't mean a CEO should handle the day-to-day technology. For that, Leonard stresses the importance of hiring and retaining a talented CIO. It's not surprising, then, that Leonard credits CIO Gary Baxter with much of MEMIC's technology success. Baxter, he says, is a trusted ally and a member of the carrier's inner circle of management. Baxter has proven especially valuable, Leonard says, in recruiting and developing skilled IT professionals.

"You look for the diversity of skills that are required in the multidimensional operation of an insurance company now," Leonard relates. "You have hardware people, software developers and Web developers. You look for the best, and the only way to select from the best is to rely on the skill and the experience of a top talented CIO."

Tech Savvy CEOs 2008

John Leonard

MEMIC

Career: Prior to joining MEMIC in 1993, Leonard spent 27 years with Travelers, where he served in various capacities, most recently leading the carrier's commercial lines field division.

Technology Philosophy: Leonard believes technology delivers competitive advantage by empowering knowledge workers with the information they need to make decisions and transact business with agents, and aggregating medical bill data to keep claims costs low.

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