In 1907, a Providence businessman named A.T. Vigneron predicted that the horseless carriages being driven around by the city’s richest men would revolutionize America one day.
With that in mind, he developed a way to insure the big-boy toys and opened the Automobile Mutual Insurance Company of America – or AMICA. The first policy was on a 1907 Cadillac owned by Vigneron and his brother Herbert.
One hundred years later, Amica Mutual Insurance Co., headquartered at 100 Amica Way in Lincoln, is one of Rhode Island’s top private companies, operating in 49 states (except Hawaii) and enjoying about $1.3 billion in revenue per year.
The mutual insurance company, which provides property/casualty coverage and, through a subsidiary, life insurance, attributes its success to a reputation of good customer service.
“We stay competitive by keeping customer service the most important,” said Robert A. DiMuccio, Amica’s president and CEO. “The business is celebrating its 100th birthday, and when we are asked how we do business now, compared to years ago, we have changed but our values have not changed at all. Our care for customers, the business and community is the same.”
Because Amica is a mutual insurance company, it is owned by its policyholders and serves only them – unlike stock companies such as Geico and Progressive Insurance, which have to generate dividends for their stockholders.
“We don’t owe anything to anyone except for the policyholders,” noted DiMuccio, though he took care not to disparage the competition.
Amica traditionally relied on good word of mouth for most of its business, but over time, it has also launched a Web site, radio and TV advertising, and direct-mail marketing campaigns.
“Times are changed, and insurance is a highly competitive environment now – especially with auto insurance. It’s fierce. There is extensive brand advertising by companies now,” DiMuccio said. “Many new business sources are still word of mouth, but we had to begin subsidizing that to create a steady source of new leads.”
Amica also invested in technology for an expanded data-driven rating system that sets the cost of insurance based on a number of risk factors. Prior to this, the company had fewer data points to consider when determining risks, DiMuccio said. The rollout of this new plan, which is the essential component to keeping Amica strong in the future, neared completion in 2006.
In addition, Amica is in the midst of its largest technology project ever – a new paperless claim system. The system is already built and being tested, and should roll out nationwide in the coming months, said Stuart Towsey, Jr., executive vice president of Amica.
Technology also keeps Amica’s 40 branch offices and two additional call centers open 24 hours a day each, and connected every day. The offices are all linked into Amica’s Lincoln hub center, where all the data processing is conducted.
“Having so many offices gives us flexibility having people across the country. If there is a disaster in that area, we want to be close to our policyholders,” Towsey said.
The company also has direct policy writers, so every potential customer who calls for a quote or information on Amica speaks with an actual employee of the company. Many insurance companies use independent agents who work for more than one insurer.
Though the agent model is good for consumers, the direct model works for Amica because it ensures that every single person answering customer phone calls is knowledgeable about Amica products and is trained on the expected level of customer service.
“Our service and pricing is competitive in the market. Consumers can talk to as many companies as they like, and we encourage it, but we like knowing our employees are working with our customers,” DiMuccio said.
Many of those employees working at Amica are loyal to the company. In 2006, Amica had 73 employees celebrate their 25th anniversaries, and almost one-quarter of the 3,056 employees have been with Amica for 20 years or more. (Amica has 1,200 employees in Lincoln.)
“Employee tenure with us is longer than most other companies, which benefits us,” DiMuccio said. “They know the culture, the service ethics of the company. When you call us [you] get someone who is knowledgeable about products and stays on the phone until the customer’s issue is resolved.”
The company has been recognized for its service over the years. Most recently, Amica earned its 13th award from J.D. Power and Associates, ranking highest in its 2006 Collision Repair Satisfaction study, which examines factors that drive customer satisfaction with the repair experience such as fast, accurate claims estimation, body shop experience, and rental car satisfaction.
Also, BusinessWeek magazine ranked Amica as one of the top 25 “client-pleasing brands” in March this year – not just among insurance and financial services companies, but among all types of businesses.
