The meteoric ascension of this insurance provider is based on providing superior value. CEO Luke Yeransian shares the details.

For a company that doesn’t focus on top-line revenue growth, FirstComp has experienced a meteoric rise in sales over the past few years. In just four years, the workers’ compensation insurance provider has grown from $100 million in revenue and 100 employees to a projected $500 million in revenue and 600 employees by year end.

Luke Yeransian, CEO

“Growing from 50 to 100 to 500 and now 600 employees can be like drinking water from a hose—it can get overwhelming,” said Yeransian, who founded the business a decade ago at the age of 33. “I won’t kid you; it’s been a challenge, but we’ve risen to it.”

High levels
A tight management staff, a flat hierarchical structure, open communications, and regional offices help maintain the service levels the company is known for, Yeransian said. The company often looks outside the insurance industry for employees, seeking a diversity of thought, educational background, employment history, and perspective. The company’s vice president of marketing and sales formerly worked for a polymer company, and a divisional president was a senior executive at a personal care products company.

“We’re looking for a high level of integrity, teamwork, enthusiasm, and passion about work and other aspects of their lives,” Yeransian said. “Talent acquisition is clearly important to us.”

FirstComp employs a handful of internal recruiters and uses the services of 10 to 12 recruiting firms. “We have a good mix of recruiter and internal referrals,” said Andy Williams, director of communications. “People like it here and know other people who would work well in our culture.”

Earlier this year, FirstComp was named one of the top five best places to work in Omaha in the large-company category. Williams described a recent invitation-only recruiting event at the University of Nebraska, where about four dozen students mixed with about 15 FirstComp directors, managers, and employees. That intimate gathering allowed the company to evaluate the available talent and tell the company’s compelling story to a captive audience.

FirstComp provides workers’ compensation insurance coverage for more than 80,000 small and midsized businesses through more than 7,000 independent insurance agencies in 26 states. Yeransian projects the company will continue its expansion to more states, but he believes the business climate only will support operations in about 35 states. Some states have monopolistic workers’ compensation funds, while others are the home states to large insurers.

West Virginia and Nevada are among states that have opened up workers’ compensation business to outside firms in recent years. FirstComp entered the Nevada market in a big way and ranks among the top three writers of workers’ comp insurance in that state.

“We’ve never been a top-line company,” Yeransian said. “We’ll compete in states where we can deliver a differentiated product and value to the customer.”

More transactions, less time
Technology always has been a differentiating factor for FirstComp, and that commitment shows in the revamped insurance system the company recently launched. Since its founding, FirstComp has used a browser-based system that allows for faster, more efficient processing of business than competitors that have cobbled together legacy systems.

On average, insurance industry employees can process 150 transactions a month. FirstComp employees can process nearly 1,200 transactions in the same period. Quotes can be turned around in minutes or hours versus the industry average of weeks. It’s no wonder so many independent agents want to represent FirstComp for its workers’ compensation lines.

FirstComp also leverages its superior technology through its wholly owned subsidiary, REX, Inc. (Risk Exchange), which produces business for reinsurance partners. “The demand for that product has outstripped our expectations,” Yeransian said. “It’s a competitive advantage for us to offer the REX platform to insurance and reinsurance companies for a fee. Fee-based income is responsible for half of our revenue this year, growing from nothing a few years ago to producing $200 million to $300 million in income.”

Arkansas was the first state FirstComp wrote business in, and to mark the 10th anniversary in that state, FirstComp donated $100,000 to several charitable organizations in Arkansas earlier in the year. The company also believes in helping the communities it serves directly. FirstComp gives employees a half-day off one day during the year so workers can aid charitable causes. About 220 employees took Yeransian up on the offer this year, giving 1,000 hours to such charities as the Omaha Home for Boys/Cooper Farm Pavilion, Omaha’s Jefferson Community Garden and Miller Park, the Sacred Heart Ministry Center, and the Omaha YWCA.

Looking back at FirstComp’s initial decade in business, Yeransian is heartened by the phenomenal success of the company he founded, the company’s position in the marketplace, and the dedication of his employees.

“Looking through the first few business plans I wrote, I would have been happy building a $30 million to $50 million company,” Yeransian recalled. “But when your ideas bring value and differentiation to the marketplace, the market rewards you. We’ve brought a different model to the market and provided strong value to our agency partners and insureds, and that’s a noble cause.”

Equally noble is providing quality jobs to nearly 600 employees. “My greatest satisfaction is affecting what started as five or 10 lives to now hundreds of lives—hiring people to challenge themselves, learn and grow, and become better people personally and professionally,” Yeransian said. “It’s incredibly exciting to have your head down, focusing on the business, and look up and see 200 new employees who are helping take the company to the next level.” E

Grayson Walker, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , is a freelance writer based in Atlanta.