John Stephens is Senior Vice President of Keenan and has over 20 years of experience in the insurance industry. CBJ interviewed Mr. Stephens about his start in the insurance industry, serving public agencies and the advantages of working with Keenan.
1. Tell us about your early career and how you came to work for public entities in the area of insurance and risk management.
I began in the insurance field in 1991, working for a large brokerage house in their National College Internship Program. I did that for two summers and upon graduation, I began my insurance and risk management career. I learned about large self insurance programs which is how most public agencies are insured. I joined Keenan in 1998 where I learned about Joint Powers Authorities and what true niche focus is all about.
2. What are two unique advantages that Keenan brings to the table when working with public agencies?
First, Keenan is a privately held ESOP company that specializes in public agencies. This is very different from other firms who just work with public agencies. We have built infrastructure and a backroom of support departments such as sales, service, claims, underwriting, loss prevention, risk management, JPA and Financial Management. These are incredibly talented people who work exclusively with public agencies so they do not become distracted by working with a variety of industries. Instead, they focus solely on public agencies and are able to leverage their experiences to create solutions to help our customers. As an ESOP company, our employees own close to 50% of the company so there is a continued sense of pride as we are all owners. In addition, we are privately held so we do not have to answer to “wall street” and operate on a quarter to quarter basis. We are able to reinvest in the company and take a very long term view on how to create the most value to help our customers. Being privately held, having a long term vision and having associates who take pride in servicing our customers has enabled Keenan to celebrate our 40th anniversary in December and has positioned us for continued success.
The second advantage is our data. By specializing in the public agency niche for 40 years and being the TPA for most of our clients, we have been able to compile the most credible and predictable data which we use to build cost-effective and financially secure programs to help our customers. Our programs are responsibly funded and have returned over $100 million dollars to the members. These are monies that could have gone to insurance companies, but instead were put back into the agencies we serve.
3. What are the most rewarding aspects of working with public agencies? What are the most challenging?
The most rewarding aspect is clearly the people. I have been blessed to work with some of the most honest, ethical and creative people both inside and outside of Keenan. I started in this business at a very young age and many customers have seen me grow up, get married and start a family. I have met and am fortunate to work with so many wonderful people who I’m proud to call friends.
The most challenging aspect of our business is the ongoing fiscal crisis. Public agencies have been forced to eliminate program and, services while laying-off thousands of employees. This is difficult as I know the children and communities ultimately are the ones who suffer. However, as I mentioned earlier, having credible and predictable data enables us to build great programs to help customers when they need it most – and that feels pretty good. Being a privately held company who has the courage to invest in solutions to help our customers makes coming to work each day a lot of fun.
4. What are the recurring issues you see public agencies in California facing today? How does Keenan help public agencies address these issues?
Health Care Reform and rising medical inflation is creating all sorts of challenges for public agencies and the insurance industry. This is impacting employee benefits and workers’ compensation. We have spent a lot of time trying to understand the complexities of Health Care Reform and now we are helping public agencies create strategies to maximize the opportunities and avoid the unintended consequences of having plans that are construed as too generous and result in a penalty tax. On the Workers’ Compensation side, medical costs continue to rise, though SB 863, the recent WC Reform, is supposed to lower costs. No one is sure what the actually results may be so rather than wait and take a reactive position, Keenan has been investing in Predictive Modeling, Wellness and other creative areas to create claims and cost-saving solutions for public agencies.
5. Are there any hobbies or activities you enjoy outside of work?
I have a wonderful wife and three terrific little girls who keep me busy. When I’m not wrapped around their fingers, I enjoy golf, but recently have taken up cycling, triathlons and will soon be doing my first half ironman. Basically, anything that creates a new challenge and requires physical activity is what I enjoy.
