Following up your best-ever financial year can be one of the most challenging things a company can do. Coming off the amazing success SFM experienced in 2022, I’m reminded how rare it is for a Super Bowl or World Series champion to repeat that success the following year.

Well, I am proud to say that SFM did back up its historically great year with a very good 2023 despite a bad winter slip and fall season, declining rates in all of our markets and added competition as multi-line carriers look to workers’ compensation for the answer to their continuing property insurance woes.

That last item is where SFM’s partnership with our independent agents really shines. 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. Every time you honor your policyholders’ desire to stay with the work comp experts, it strengthens our mutual relationship. SFM’s policyholder retention rate remains the best in the business, and we recognize the enormous role our independent agency partners play in upholding that standard. On top of that, you have presented us with more new account opportunities than ever. SFM has responded by writing more new business in 2023 than we have ever recorded in a year ($33 million).

Just as SFM has been there for you through the unpredictability of the pandemic and oddities of the post-pandemic economy, we will be there for you and your policyholders in the years to come.

Since we only write workers’ compensation insurance, our success depends on doing it exceptionally well. We are proud to deliver on that commitment, and we count on our agency partners to help us get it done right. We’re grateful to the agents and policyholders who let us know in survey after survey that our unwavering devotion to service excellence has benefited them.

Key takeaways and highlights from 2023:

• Continued 96%+ policyholder retention rate
• Record new business
• Audits and endorsements tracking ahead of projections
• Impact from medical inflation continues to be mild
• Paid losses better than expected, enabling reserve releases
• Policyholder surplus growth larger than premium growth
• Combined ratio on track for a 13th year in a row below 100%

Financial results are an important measure of performance, but we never lose sight of the fact that our success comes as a result of doing right by our all of customers. At SFM, we get there by living our mission every day, and we’re proud to partner with independent agents who believe in it.

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’s expansion to new states in recent years is paying off, as the company’s share of premium outside of Minnesota continues to grow.

While SFM is still the No. 1 workers’ comp carrier in Minnesota, and the state’s largest writer of workers’ comp since 1991, its ratio of premium and policy counts between its home state and others is shrinking. And that’s a good thing — SFM is diversifying and expanding its footprint in the realm of workers’ compensation insurance.

As of late 2023, that figure (Minnesota compared to other states) is about 60/40.

“We’re extremely proud to have maintained our status as Minnesota’s leading work comp insurer,” said Cody Allen, Business Development Specialist. “But to see our foothold in new states grow over the past few years has been remarkable. It’s a testament to our commitment to be the work comp experts and provide the best possible outcomes for agents, policyholders and employees.”

SFM expansion update

By way of background, several years ago SFM started expanding into a few states near its Minnesota headquarters:

• Wisconsin – 2003
• Iowa – 2009
• Nebraska – 2009
• South Dakota – 2007

In recent years, the company has moved into Kansas, Indiana and Tennessee.

As well as being the top workers’ comp carrier in Minnesota, SFM’s market share position in that first batch of states is:

• Wisconsin – 15th
• Iowa – 7th
• Nebraska – 9th
• South Dakota – 4th

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

Meanwhile, SFM policyholders are increasing in Kansas, Indiana and Tennessee. Partnering with local groups in each state, it’s anticipated that SFM will capture additional market share in these states in the coming years.

“What this really demonstrates is the value agents and policyholders see in SFM and its focus on customer service,” said Shawn Miner, VP of Regional Business. “We only do work comp and we do it well.”

Take Kansas, for example. SFM entered the state in 2020 and agency partners have helped the company write nearly 700 policies for $2.7 million in-force premium, along with hiring additional expertise within the state of Kansas.

The feedback from agency partners in Kansas about SFM’s service model and ease of doing business has been overwhelmingly positive, with several agencies saying SFM is their go-to work comp carrier and requesting SFM write some of their larger accounts.

“We are excited to provide this increased appetite to our partners so that they can offer our top-notch services to more Kansas employers,” Miner said.

SFM is always cognizant of agent feedback when it comes to its expansion efforts and will continue to listen to its business partners moving forward.

That ongoing dialogue has contributed to the growth at SFM. Long-standing partners know that SFM believes in steady, measured growth, which brings value to both established partners and newly appointed agents.

“We continue to be viewed as a leader in the work comp industry,” said Steve Sandilla, Senior VP and Chief Business Officer. “While SFM has long been a leader in the Midwest, the success of this latest round of expansion is a sign that we will continue to garner more market share in the years to come.”

SFM is now licensed in 34 states. You can view a complete state coverage list on the account types and territory page of the SFM website.

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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 $40,000 and $45,000.

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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SFM recently hosted another educational webinar for our policyholders and agents. Titled “The Foundations of Hiring and Onboarding,” it’s still available for you to view.

In the webinar we discussed how establishing best practices for hiring and training new employees can help businesses and their workers succeed in the long run.

Head to sfmic.com/webinars to watch the webinar recording, and to view previous webinars and quick excerpts on work comp topics including loss prevention basics, winter slips and falls prevention, best practices for injury reporting and return to work, a breakdown of work comp benefits, avoiding litigation, and much more.

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SFM’s online resource catalog offers a wide range of educational items designed to help policyholders prevent injuries, manage their claim activity and learn more about workers’ compensation. Also included are materials to help agents market their accounts with SFM.

Did You Know: Other states coverage

A handout that explains how each state has its own workers’ compensation requirements, which can apply to anyone who works, lives, travels or is hired in that state, as well as some of the factors that go into determining whether employers have the proper coverage.

The right choice for trucking operations

SFM is now a market for your trucking customers — this resource highlights details about insuring trucking businesses.

Visit the agent marketing materials page for more resources like these.

Fact sheet: Injuries caused by winter slips and falls

Based on independent research and SFM’s claims data, winter slips and falls put workers at a high risk of injury. This resource highlights specific steps that employers and employees can take to reduce the chances of injury.

​Penguin series – No short cuts email attachment

Part of the slips and falls series, this resource generates awareness of slips and falls hazards and promotes safe processes. It also encourages employees to pick the safe route and not take shortcuts.

Penguin series: Avoid winter falls packet

This packet includes all the tools you need to prevent winter slips and falls. It features tools for supervisors, a campaign activity sample, traction footwear information, training tools and penguin posters, table tents and more.

Encourage your policyholders to download these resources from SFM’s online resource catalog and visit the site often for the latest materials.

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SFM is introducing multi-factor authentication and new password requirements on March 14 to enhance your SFM Agency Manager (SAM) account security.

Setup process available starting March 14

To prepare for multi-factor authentication, you’ll have the opportunity to confirm your email address and mobile number when you log in to SAM, beginning March 14.

You’ll also be prompted to reset your password if it’s under 12 characters to meet the new password length requirement. Once you’ve reset your password, you won’t be required to change it again for a year.

After setting up multi-factor authentication, you’ll be prompted to enter a 6-digit verification code sent via email or text to log in once every 30 days. You’ll also need to enter the verification code whenever you clear your cookies or switch to a different browser or device.

For more information on multi-factor authentication, visit our multi-factor authentication frequently asked questions page.

Separate accounts advised for anyone who needs access

As part of the rollout of multi-factor authentication, we’re also asking customers to set up individual accounts for anyone who needs access to SAM, as sharing accounts will become more difficult.

To add accounts, contact your agency’s SAM administrator.

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SFM is making upgrades to its online MyPayroll system with new features and a streamlined process to make it even easier for policyholders to complete their annual premium audit.

The enhancements are expected to go live soon.

For agents, the most notable improvement is that they will receive an email notification when policyholders submit their payroll audit. This will allow agents to keep track of audit status more easily.

“We’re excited to roll out these enhancements to SFM’s MyPayroll system,” said DeAnne Misgen, Premium Audit Team Leader. “We already have strong reviews of our premium audit system, and these upgrades serve as another example of SFM’s commitment to improving the customer experience.”

For policyholders, the new features include:

• The ability for users to securely upload multiple documents at once using a drag-and-drop interface
• Email notifications in addition to physical letters about premium audit deadlines
• Users can add documentation to their audit after it’s been submitted

Meanwhile, the updated MyPayroll will also allow users to use the system even after they have missed their payroll audit deadline and received notice of pending cancellation.

New MyPayroll users

With the enhancements to MyPayroll, a wider range of policyholders will be able to complete their audit using this method, including some policyholders who previously completed their audit in person or via email only. This will give them more control over their audit process, allow for self-service and eliminate the need to schedule an SFM representative each year.

First-time users should find the process smooth and intuitive, and such policyholders will still have access to SFM’s support team and resources.

Again, the upgrades to SFM’s MyPayroll system go into effect during the first quarter of 2024. If you have any questions, please contact your SFM underwriter.

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Here’s a look at the latest updates and milestones for SFM’s underwriting staff in the last quarter of 2023.

• Wisconsin Accounts Senior Marketing Underwriter Amber Saurbeir celebrated 5 years with SFM
• South/Metro Accounts Marketing Underwriter Specialist Belinda Seitzer celebrated 5 years with SFM
• Small Business Accounts Underwriter Willie Kirchoff celebrated 5 years with SFM
• Underwriting Technical team Underwriting Specialist Ashley Butcher celebrated 10 years with SFM
• Small Business Accounts Senior Underwriter Jason Kelley celebrated 10 years with SFM
• North/Metro Accounts Marketing Underwriter Specialist Lindsay Henningsgaard celebrated 10 years with SFM
• Small Business Accounts Marketing Representative Mark Lewis celebrated 10 years with SFM

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SFM is planning to participate in several insurance industry events in the coming months.

• Feb. 5-7 Kansas Association of Insurance Agents Annual Convention
• April 4 Minnesota Big I Annual Expo
• May 9-10 PIA of Indiana Annual Convention
• May 15-16 Independent Insurance Agents of Wisconsin InsurCon 2024

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