By all objective measures, SFM’s financial results for 2021 are outstanding. From reaching new heights in customer retention to setting records in new business and total written premium, the company has excelled in virtually every category of performance.

“Looking over the 2021 financials, there’s plenty for SFM to be proud of,” said SFM Senior Vice President Steve Sandilla. “An even greater source of pride for our staff is living up to the reputation of delivering a level of customer service that’s second to none.”

Highlights from 2021:

• SFM’s commitment to customer relationships has resulted in exemplary customer retention over the years. In 2021, SFM raised the bar even higher, by reporting an unprecedented policyholder retention rate of 96.6%.
• SFM added 6,329 policyholders, representing record new business premium of over $30 million.
• Written premium for the year totaled $212 million.
• SFM had a combined ratio of 90%, representing 10 straight years with a ratio below 100.

SFM’s book of business now includes more than 28,000 employers throughout the region. In addition, SFM’s Superior Point division serves approximately 13,000 policyholders as a servicing carrier for the Minnesota Workers’ Compensation Assigned Risk Plan. In 2021, SFM was also selected to serve 20% of the Wisconsin Worker’s Compensation Insurance Pool.

SFM is actively engaged in expanding business beyond its original home state of Minnesota. Well over one third of the company’s in-force premium now comes from SFM’s other core states: Wisconsin, Iowa, Nebraska, South Dakota and Kansas. After last year’s successful Kansas rollout, SFM is in the process of adding agents and policyholders in the state of Indiana in 2022.

According to Sandilla, independent insurance agents have played a critical role in the successes described above. SFM places a consistent emphasis on growing relationships with these valued partners that are mutually beneficial and lasting.

“Agents know that when they trust their clients to the work comp experts, they can count on the best customer service in the business,” Sandilla said. “Year in and year out, we do everything within our power to reward that trust with great results for our customers.”

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Hundreds of agencies have signed up to have their commissions deposited directly into their bank accounts. If you haven’t signed up yet, now is the time!

Enroll today by following these simple steps:

• Log into SFM Agency Manager (SAM) and click on the “Commissions” tab. (Note: This tab is automatically available to admin level users only. Administrators can give access to other SAM users in the “User Profiles” area by selecting the “Agency commissions contact” under “Contact type” on their profile.)
• Click “Add account” and follow the instructions.
• Wait for two small deposits to show up in your bank account (this typically takes 1-2 days). Then return to SAM and verify the account. This step helps us keep your account secure and make sure your commission payments get to the right place.

For full setup information you can download the instruction sheet . If you are unsure of your SAM user ID or have other questions, you can email us at agencymanagement@sfmic.com.

Viewing commission statements

Once you start receiving direct deposit commissions, you can return to SAM anytime to view commission statements. To do this, just click “Commissions” and then click “Commission statements,” which is located on the far left just below the green box that says “SAM.”

You can also have statements automatically emailed to you or anyone at your agency. Just click “Commissions” and then “Manage notifications” to set this up.

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SFM’s territory expansion successes continue as the team finds opportunities to get their feet on the ground in our two newest states.

More than 100 Kansas agencies have signed up to work with SFM and the total in-force premium written since we entered the state in September 2020 has far exceeded expectations, cresting the $1 million mark as we started 2022.

Much of that is thanks to our agency partnerships which further our efforts by helping us make new connections. Attending the KAIA Annual Convention in January boosted our visibility in the state even more.

“Several agencies have told us that we are their go-to work comp carrier,” said Senior Marketing Underwriter Jeff Magee. “And that was after just 18 months in Kansas.”

Kansas agents have told Magee they appreciate how easy it is to submit business through SFM Agency Manager (SAM), he said.

“They say SAM is intuitive and makes it easy to do business with us,” Magee said, “especially the built-in class code checker, quick online applications, and pay-as-you-go and credit card payment options.”

Entrance into Indiana

SFM kept the momentum going as the company entered Indiana this year, quickly outpacing our goals for written premium and appointed agencies early in the year. We’ve remained on track to hit additional milestones by the end of 2022.

“We’re still in the process of growing our agency force in Indiana,” said Business Development Specialist Cody Allen. “So far the agencies we’ve met with have been very welcoming and we look forward to making more connections as we continue to visit Indiana in the coming months.”

SFM’s territory expansion team has several more marketing trips to the state planned for the remainder of this year. The company has become a member of the Independent Agents of Indiana.

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Three SFM representatives participated in this year’s Kansas Association of Insurance Agents (KAIA) Annual Convention in Wichita, Kansas on January 24-26.

“The convention gave us an opportunity to see many of our current agency partners and continue to build our brand and presence in Kansas,” said Small Business Marketing Representative Mark Lewis. “It was a really fun event that we plan to continue to sponsor and attend going forward.”

SFM is a KAIA member and a sponsor of the annual event. Lewis, Senior Marketing Underwriter Jeff Magee and SFM Business Development Specialist Cody Allen attended.

“The feedback we get from agencies is that they love working with SFM for two primary reasons – ease of doing business and responsiveness,” Magee said. “We’ve made it easy for them to work with us and they hear from us quickly, providing a 1- to 2-hour turnaround in most cases.”

The team is looking forward to making more connections in Kansas throughout 2022.

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The results of our latest agent survey are in, and agents gave SFM high marks on ease of doing business. 94% of respondents said it is either “easy” or “very easy” to do business with SFM, with 6% of responses being neutral.

Thank you to the more than 450 agents who participated in the survey. We review all feedback carefully and use it to continue to improve our services.

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Two attorneys from SFM’s in-house law firm have taken up leadership roles in the Minnesota legal community.

Jessica Stoeckman, JD, Defense Counsel, was named co-chair of the Minnesota Defense Lawyers Association Workers’ Compensation Committee. Her role includes organizing meetings for member defense attorneys. She also acts as a liaison between members and other interested parties, such as the Department of Labor and Industry and the workers’ compensation division at the Office of Administrative Hearings.

Peter Lindquist, JD, Defense Counsel, was named to the Minnesota Defense Lawyers Association Workers’ Compensation Legislative Policy Subcommittee. His role involves meeting with other members of the association to discuss insurance and defense focused proposals for new legislation and rulemaking changes. He and other members also represent those ideas in discussions with the Minnesota Association for Justice and with Department of Labor and Industry workgroups.

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The attorneys of SFM’s in-house law firm compiled a win/loss record of almost 80% (15-4) in 2021 for hearings at the Office of Administrative Hearings in St. Paul, Minn.

In terms of workers’ compensation case law, the legal team saw some significant cases come down from the Minnesota Supreme Court in 2021. The Musta v. Mendota Heights Dental Center and the Bierbach v. Digger’s Polaris decisions that came down in October found that insurers do not have to reimburse for medical cannabis. The attorneys representing the injured workers in these cases have appealed the decisions to the United States Supreme Court and the court is looking at these cases. It is LSH attorneys’ understanding that they have invited the Biden administration to submit a brief on the issue. Stay tuned to future issues of the Agent Agenda for updates on these cases.

In another important decision, the Minnesota Supreme Court provided clarification to the “rare exceptions” rule provided for in the Minnesota Treatment Parameters. In two separate cases, Leuthard v. Independent School District 912 (April 2021) and Johnson v. Darchucks decision (August 2021) the court provided necessary guidance as to when a rare exception will be allowed. In the Leuthard v. Independent School District 912 decision, the Court stated that the employee must raise the rare exception at the hearing and present evidence as to why a rare exception should be granted.

The Court then went further in the Johnson v. Darchucks decision finding that the rare exception is reserved for “exceptional circumstances” that the drafters of the parameters did not anticipate. The injured worker must establish justification as to why the treatment parameters are not being followed.

These are all important decisions as we continue to review and litigate issues associated with the treatment parameters.

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For over a dozen years, the SFM Foundation’s annual golf tournaments have been the charity’s top source for fundraising. These gatherings have turned into one of the highlights of the season for Foundation supporters. In 2022, the Foundation is hosting events in both Minnesota and Iowa, and SFM’s agency partners are invited to join the fun.

The Iowa event comes first this year, to be held at Hyperion Field Club in Johnston on Monday, May 23, 2022. The Minnesota event is scheduled for Monday, June 13, 2022, at Prestwick Golf Club in Woodbury.

Space at both events is limited, and these dates are right around the corner. To learn more about registration or sponsoring the events, visit sfmfoundation.com .

Funds raised at these events go toward scholarships for students whose parents were seriously injured or killed while working for Minnesota or Iowa employers.

About the SFM Foundation

The SFM Foundation was created in 2008 by SFM Companies. SFM Foundation is dedicated to easing the burdens on families affected by workplace accidents. Since its inception, the Foundation has awarded 203 scholarships totaling $2.8 million. For more information, visit sfmfoundation.com .

SFM Foundation is an affiliate of Kids’ Chance of America in Iowa and Minnesota.

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