SFM is off to a fast start in 2025, building on the success of last year.

Claims frequency and severity were down through the first quarter of the year, and SFM saw fewer medical-only claims than expected. Following a strong January, premium is on plan through Q1, though the market continues to be competitive.

Another noteworthy item is that SFM set a record in 2024 for returning policyholders.

“Our results so far this year reflect our overall philosophy of measured, steady growth,” said Steve Sandilla, Senior VP and Chief Business Officer. “As we look to build on a good first quarter, we want to remind our agent partners that we look forward to working together to generate new business, as well.”

Meanwhile, SFM continues to garner market share in its core states. The recently released 2024 rankings for SFM are:

• Minnesota – 1 (no change in rank, but did slightly increase market share)
• South Dakota – 3
• Iowa – 6
• Nebraska – 7
• Wisconsin – 10

At the same time, SFM also saw increases in its newer states — Kansas, Indiana and Tennessee all improved market share in 2024.

The latest figures come from regular industry reports issued by SNL Financial. SNL, a data analytics firm within the S&P Global organization, issues an annual insurance industry study that compares market share and ranks carriers within each state of operation.

Also, as a refresher, some of the highlights from 2024 include:

• 95.5% policyholder retention rate
• Added 6,800 new policyholders, resulting in new business premium of over $26 million
• Total written premium for the year: $272 million
• Another year of an A- rating from AM Best
• SFM Foundation up to $4.1 million in total scholarships awarded

For more on last year’s numbers, see the Agent Agenda article from January.

Returning policyholders

Several years ago, SFM began tracking those policyholders who went with another insurer but later came back to SFM. And in 2024, that was a record number.

More than 300 employers that had previously moved to other carriers returned to SFM last year, boosting the bottom line and reaffirming the value policyholders see in SFM’s dedication to customer service. A broad spectrum of companies returned to SFM in 2024, but there were more large accounts that came back last year than is typical.

“Work comp insurance buyers must make a renewal decision every year,” said Mike Happe, Senior VP and Chief Marketing Officer. “That said, maintaining such a great customer renewal retention rate — and having so many departed customers return each year — are proof of the value of SFM’s high quality level of service that we provide, day in and day out.”

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SFM is making two important enhancements to its workers’ compensation operations in Indiana, both of which will go live May 1.

To begin, SFM will start writing business with mid-market employers, further expanding SFM’s presence in Indiana as it continues to gain a greater portion of the state’s workers’ compensation market.

“We’re excited about this new chapter for SFM and our commitment to Indiana,” said Cody Allen, SFM Territory Manager, who was recently elected to the governing board at the Indiana Compensation Rating Bureau. “The agents we work with know the value SFM brings to the table and our reputation for exceptional customer service. Now, that will extend to a larger pool of potential clients.”

SFM began writing business in Indiana in 2022 and previously focused on writing policies with smaller employers. Starting May 1, agents can expect SFM to be “open for business” for accounts larger than $25,000 in annual premium, said Mike Happe, Senior Vice President and Chief Marketing Officer.

“Our relationships with agency partners in our newer states are gaining more momentum with each passing year,” Happe said. “SFM’s standing as the work comp experts has helped us develop and retain business in these markets, and we’re thrilled to expand our book of business in Indiana.”

Claims handling

The second big change coming at the beginning of May is that SFM will begin handling Indiana claims in-house.

Injuries that occur on or after May 1 will be addressed by SFM claims personnel directly, rather than through a third-party vendor. (Claims with earlier injury dates will continue to be handled by a vendor.)

Policyholders will see no change in how they report claims — they can still call the SFM Work Injury Hotline, report online through SFM’s website or the CompOnline portal.

“SFM is known for its expertise in claims handling. By taking on these claims in-house, we hope to provide a higher level of customer service and a better experience for policyholders and injured workers,” said Angie Andresen, Vice President of Claims.

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The National Council on Compensation Insurance (NCCI) has again given SFM excellent marks for the quality of its data reporting.

Recently released results from 2024 demonstrate SFM’s commitment to accurate reporting in several categories:

• Financial data
• Unit statistical data
• Policy data
• Medical data
• Indemnity data

The NCCI is the nation’s most comprehensive source for workers’ compensation data, insights and solutions.

“The effort we put into our data reporting is vital because it makes SFM a better carrier and makes doing business easier for agents and policyholders,” said Brian Bent, SFM Vice President and Director of Underwriting. “Quality data leads to a quality experience. And SFM’s excellent grades and percentages are important to us and our partners.”

It’s not common for SFM to receive a notice about an issue with data reporting, said Bent, who also serves on the NCCI Underwriting Committee. For several years SFM has received exceptional grades from the NCCI.

Mike Happe, Senior Vice President and Chief Marketing Officer at SFM, said accurate data reporting helps agents spend less time on policy tweaks or corrections, as well as making it easier to track down experience modification factor numbers.

“At the same time, having precise data also frees up agents to manage accounts and prospect for new business,” Happe said. “SFM is committed to quality customer service, and that extends to our data reporting.”

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SFM’s Ryan Jirak, who has more than 16 years of experience in the insurance industry, was recently promoted to VP of Regional Business, Large Accounts.

He has previously worked at SFM as a midmarket underwriter, small business marketing representative and in large accounts business development. As of 2020, he has led SFM’s strategic business unit for large accounts, now being promoted to Vice President.

“It’s exciting. Our team is incredibly experienced. We have great relationships with our policyholders and agency partners,” Jirak said. “And now our next generation is stepping up and running with the culture already created. I’m just excited to be part of it.”

Jirak said he views the team as a resource for policyholders. His role is to help ensure the transfer of knowledge when employees take on new roles among SFM’s large accounts.

“A lot of times, we’ve been working with the same claim handlers and in-house attorneys at these policyholders for 10-15 years,” he said. “It’s so fun to help develop new relationships and assist those professionals who are taking over new roles with our policyholders.”

A native of New Prague, Minn., Jirak now lives in Victoria, Minn., with his wife and dogs. During the fall, he volunteers — or “voluntold,” as he put it — on his in-laws’ apple orchard. He also enjoys enhancing wildlife habitat on his conservation property in western Minnesota.

“When I first came to the Twin Cities, I was looking for a job outside insurance,” Jirak said. “But after finding SFM, having the coworkers I do and the strong relationships we have with our policyholders, that’s the reason I come to work with a smile every day.”

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Shawn Miner, SFM’s VP of Regional Business, Iowa/Nebraska/Kansas Accounts, was appointed to the governing board of the Kansas Workers’ Compensation Insurance Plan (KWCIP) earlier this year.

The organization, facilitated by the Kansas Department of Insurance, primarily focuses on the residual workers’ compensation market and the administration of the state’s assigned risk plan. Miner’s three-year term began at the start of 2025.

“SFM started writing business in Kansas in the fall of 2020 and we have steadily been increasing our presence in the state,” Miner said. “Being on the KWCIP is a great opportunity to get involved on the industry side, as well as continuing to build relationships with our agent partners and policyholders.”

The group’s board members include insurance carriers, agents, business leaders and others. It consults and collaborates with the Kansas Insurance Department and the National Council on Compensation Insurance.

“I’m excited to get involved with KWCIP and learn more about the organization and its role in work comp in Kansas,” Miner said.

At SFM, Miner oversees business in Kansas, Iowa, Nebraska, Indiana and Tennessee. He lives in Iowa with his wife and three children.

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Agents will soon be able to make payments and manage AutoPay for customers right within SFM Agency Manager (SAM). Also, we are enhancing the billing information you can see within SAM.

The upgrades are expected to roll out later this spring.

AutoPay setup and management

Soon, you will no longer need to go to another site outside of SAM to make a payment on behalf of a customer.

Within the Policies section of SAM, on the “Billing Summary” page of any policy, you will be able to:

• Make a one-time payment
• Set up AutoPay
• Change the AutoPay payment method
• Change the AutoPay email notification recipient
• Cancel AutoPay

You’ll still be able to set up AutoPay right away during the binding process.

Enhanced billing information

You will also see additional information on the Billing Summary page to help you better answer customers’ questions about their SFM bills.

On the Billing Summary page, you will soon be able to find:

• A downloadable installment schedule
• Current invoices and their payment status
• Payment details, such as date paid and payment method
• Return fund amounts

SAM admin change: Unique email addresses required for new users

Lastly, we recently made an update to SAM that requires users for the same agency to have different email addresses.

SAM administrators can no longer create a new user if another user is already assigned the same email address for the same agency.

We added this requirement to prevent admins from accidentally creating duplicate accounts, and in preparation to allow users to log in with their email addresses later this year.

If you have any questions about this change, please contact us.

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Even under growing pressure from package carriers, SFM had another successful year in 2024.

The achievements at SFM are a direct result of our relationships with our agent partners — through both policyholder retention and generating new business.

We continue to strive to be the leader in workers’ compensation coverage, providing unmatched service and working to keep employees safe while ensuring clients see reductions in their experience modification factor.

Our commitment to service excellence is the foundation for the success we share, and I believe the results will bear that out every time.

Highlights from 2024 include:

• SFM’s policyholder retention level of 96% further demonstrates our industry-leading customer loyalty
• Growth in our newer markets continues, particularly Indiana and Tennessee
• Policyholder surplus growth larger than premium growth
• We continue to make enhancements to our online portals, the SFM Agency Manager (SAM) and MyPayroll, making our processes smoother and more user friendly
• We upgraded the SFM Resource Catalog, released new promotional videos and again provided our policyholders with valuable safety webinars

As we move forward in the new year, we want to build on the strength of our partnerships, write more business with our agent partners and keep the momentum we have built over the years. When you choose to keep your accounts with SFM, we recognize that you are resisting the pressure from the multi-line carriers demanding the consolidation of the work comp with their collateral lines.

SFM realizes that strong financial results are important, but we know our unwavering commitment to customer service and doing right by all our stakeholders is paramount.

Thank you for your continued support and partnership! We look forward to sharing success with you and your clients for many years to come.

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SFM continues to see growth beyond its home state of Minnesota, where it remains first in terms of workers’ compensation market share.

“Our relationships with agency partners outside of Minnesota are gaining more momentum with each passing year,” said Mike Happe, Senior Vice President and Chief Marketing Officer. “SFM’s reputation as the work comp experts has helped us develop and retain business in our newer markets.”

Below are SFM’s top five states and their carrier rank based on written premium (the rankings for 2024 will be released in the spring of 2025).

• Minnesota – 1
• Wisconsin – 15
• Iowa – 7
• Nebraska – 9
• South Dakota – 4

Meanwhile, SFM’s growth in newer markets saw significant increases in Kansas, Indiana and Tennessee, and the company is putting additional resources into those states. Also of note, Cody Allen, SFM Territory Manager, has been elected to the governing board at the Indiana Compensation Rating Bureau.

Highlights from 2024 include:

• 96% policyholder retention rate
• Added 6,800 new policyholders, resulting in new business premium of over $26 million
• Total written premium for the year: $255 million (excluding the Wisconsin Assigned Risk Plan)
• Another year of an A- rating from AM Best
• SFM Foundation up to $4.1 million in total scholarships awarded

“Despite seeing increasing claim severity, we have seen measured, steady growth, and SFM will continue that strategy in the years to come,” said Steve Sandilla, Senior VP and Chief Business Officer. “We continue to make the best outcomes for clients our primary focus and we are thankful for the trust of our agents and policyholders year after year.”

Other SFM items of note

SFM partnered with more than 3,000 independent agents in 2024 and closed out the year with its number of businesses served over 50,000. That adds up to more than 500,000 covered employees.

The company also retained the service contract for the Minnesota Workers’ Compensation Assigned Risk Plan (ARP), which renewed for another five years, and SFM’s portion of the Wisconsin program is increasing next year from 20% to 25%. Company leaders are working on growing that business in other core states for the future.

The Minnesota ARP, served by SFM’s Superior Point, handled 13,500 policyholders and $20 million in premium for 2024. In Wisconsin, SFM handled about 4,000 policyholders and $12.5 million in premium for 2024.

Also, SFM Risk Solutions provided third-party administration service to 32 self-insured clients in 2024, including four groups with about 2,000 individual members.

Lastly, SFM added Dr. Andrew Wilkins to its staff as Chief Medical Director on the Medical Services team in 2024.

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SFM CEO Terry Miller has been named the next president of the American Association of State Compensation Insurance Funds (AASCIF).

“When it comes to sharing new and old ideas on how to be a better workers’ compensation insurance carrier, I have not come across an organization close to as good as AASCIF,” Miller said.

He begins his two-year term as president starting in January 2025. AASCIF is an association of workers’ compensation insurance companies from 26 different states, plus eight work comp boards in Canada.

Miller has long been involved with AASCIF, attending his first meeting with the group in Montana in 1985. He has served the organization in a number of roles over the years, including:

• Being a member of the group’s Audit and Data committee in the 1980s
• Joining the Finance and Investment Committee in the 1990s, chairing that group in 2002
• Previously serving as the AASCIF treasurer
• Being an active member of the Executive Committee

“Terry exemplifies AASCIF’s values of service and sharing. I first met Terry at the AASCIF annual conference in Oklahoma City back in 2017. I chatted with him and learned that he was preparing to host the 2018 conference in Minneapolis. He shared his belief that AASCIF is the best organization going when it comes to sharing professional experiences and is an important part of the overall apprenticeship type model that many of its members utilize,” said Vern Steiner , President & CEO of the State Compensation Insurance Fund. “Through my term as president, Terry’s contributions have driven home his commitment to AASCIF, and I am confident that I could not be handing the presidency over to anyone who cares more about our organization.”

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It’s that time of year again…

With winter in full swing — and the upcoming thawing and refreezing cycles in the months ahead — workplace safety should be paramount.

Be sure to remind your policyholders that just because spring is on the horizon, it doesn’t mean they can be any less vigilant about workplace safety.

Slips, trips and falls – the bottom line

Slips, trips and falls are a leading cause of workplace injury. They can be severe, leading to fractures, head trauma or worse.

The costs of covering these claims gets expensive. Not only can it negatively influence the employer’s experience modification factor, but it also impacts agency and carrier results. SFM estimates the average winter slip-and-fall lost-time claim to be between $50,000 and $55,000.

Weather is a major factor in workers’ compensation. Slipping and falling because of snow and ice is one of the most common workplace injuries.

Resources for policyholders

With a few reminders and some common sense, policyholders can help employees stay safe and reduce the potential for claims.

A few basic tips for you to pass along include:

• Properly maintain your parking lot and walking areas
• Encourage employees to wear appropriate shoes for the weather
• In the case of a snowstorm, let employees work from home or reschedule if possible
• Manage snow piles near walkways to avoid melting snow refreezing to ice

Policyholders should educate their employees about other winter safety measures, such as walking like a penguin, salting slippery areas, avoiding shortcuts, and stepping down, not out, of vehicles.

If you are looking for additional resources to help in these efforts, check out what’s available on our website or contact your underwriter.

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