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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SFM recorded yet another excellent year in 2023, continuing its strong performance across all core metrics, from policyholder retention to new business and total written premium.
