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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