RLI conducts its operations primarily through four insurance subsidiaries — RLI Insurance Company, Mt. Hawley Insurance Company,[4] RLI Indemnity Company, and Contractors Bonding and Insurance Company.[5]
History
Founded in 1965 by Gerald D. Stephens, Replacement Lens, Inc. (RLI) was one of the first insurers of contact lenses.[4][6][7] In 1970, RLI's statistics predicted 580 losses a year for every 1,000 contact lens owners.[8] In a Rough Notes magazine article, Stephens said, "At that time, it cost around $200 to replace a pair of lenses, and most of the people who wore them were young and couldn't afford to take that risk."[4]
Eventually,[when?] the company emerged as one of the leading contact lens insurers in the United States.[citation needed] Building upon its success in the contact lens market, RLI further expanded its business into other niche insurance markets.[4] For example, in 1982 they administered pet insurance for an Arizona veterinarian.[9] RLI also entered the Hawaii homeowner's market in 1996 by purchasing the business of the Hawaii Property Insurance Association (HPIA).[4][10] Many insurers do not offer property insurance in places with high catastrophe exposures, but RLI has introduced business lines with difference in conditions (DIC) coverage.[4]
Over time, the demand for contact lens insurance shrank with the emergence of more affordable disposable soft lenses.[4] In order to remain competitive, Stephens expanded RLI's offerings to include commercial property and liability insurance.[citation needed] In 1994, the company retired its founding contact lens insurance product and in 1996 RLI sold its RLI Vision unit to Maui Jim, a manufacturer of luxury sunglasses.[citation needed]
In 2013, RLI invested $20 million in renovations of their Peoria headquarters.[11] In 2015, RLI announced a $15 million addition as the next phase of their renovation.[11]
Key people
Jonathan E. Michael served as Chief Executive Officer from 2001 and retired December 31, 2021.[5][12] He served as Chairman of the Board since 2011.[5] Craig W. Kliethermes, who had previously served as President and Chief Operating Officer since 2016 and joined the company in 2006, became the CEO on January 1, 2022.[5]
