The first half of 2023 is in the books, and it’s already been a remarkable year for SFM in a number of ways. New and renewal premium results have been outstanding, customer retention continues to be very strong and claim activity is trending in the right direction as the year unfolds.

Premium performance: positive activity on all fronts

SFM has already seen excellent new business results in 2023, continuing the trend in recent years of exceeding expectations. New account development has topped $24 million, well ahead of plan and on pace to top last year’s remarkable growth. SFM is writing these new accounts across a widening territory that now includes eight core states (Minnesota, Wisconsin, Iowa, Nebraska, South Dakota, Kansas, Indiana and Tennessee).

Renewal premium also continues to be very strong, running significantly ahead of expectations through the first half of the year. Year-to-date renewals are more than $2 million ahead of projections. With these returning policyholders, SFM continues to demonstrate industry-leading customer loyalty – with policyholder retention remaining above 96%.

Premium audits, endorsements and retentions also continue to exceed expectations, resulting in significant additional premium generation throughout the policy year. Combined with the increases in new and renewal premium, this has allowed the company to set a new high-water mark for total written premium.

Coming off an already outstanding first half, SFM saw premium numbers leap upward again. In July, the company set a new record for premium in a single month, topping $40 million for the first time. Totals through the month of July showed written premium at nearly $169 million, which is $10 million above plan.

“As we navigate through the remainder of the year, we know that positive results like these come as a result of the excellent relationships we have with our agency partners,” said SFM Senior Vice President Steve Sandilla. “I’d like to personally thank our valued partners for continuing to renew their clients with SFM and providing us the opportunity to write new business with them.”

While premium is up, pricing is down

Premium growth like this is even more remarkable in light of the fact that overall pricing across the workers’ comp line continues to decline. Rate reductions across the states in which SFM operates continue to drive pricing downward.

“Pricing is down roughly 5% on our book as a whole but might vary depending on what state you are in,” Sandilla said. “Year-to-year we are sitting at a price reduction of 4.9%, and while this is 1.7% better than expected, pricing continues to be a challenge as we write accounts.”

Claim activity, from stormy to calm

With an increase in premium comes an increased exposure base for injuries and claims. With that expanded book of business, one might expect to see claim activity rise at a similar rate. To the contrary, SFM has seen claim frequency and severity well moderated throughout the year. Year-to-date claims have been close to SFM’s overall projections, with both frequency and severity trending strongly downward though the calendar year.

“We started off a little rough with a higher-than-expected number of snow and ice claims during the long and snowy winter,” Sandilla said. “Once the winter weather finally let go, those claim numbers began shaping up pretty quickly.”

Since April, claim frequency has reverted to a more predictable pace, which has helped overall results through the first half of the year. SFM’s combined ratio is tracking around 95%, which is on pace with the projections that were established going into 2023.

Agents play a critical role in preventing injuries

According to Sandilla, SFM relies on agent partners to encourage policyholders to keep their workplaces safe, especially during the winter slip and fall season. By spreading the word about winter workplace safety, agents can help prevent costly and potentially tragic injuries.

“We need our agents to remind their policyholders to take advantage of SFM’s safety resources to keep their employees safe,” Sandilla said. “Make yourself familiar with the valuable materials on our website and you can make a big difference in reducing injuries for your policyholders.”

SFM’s website offers hundreds of educational resources focused on making workplaces safer. These materials are available free of charge for agents and policyholders at sfmic.com. Popular resource topics include safety for new hires, back injury prevention and avoiding outdoor slips and falls. At this time of year, the latter category is particularly important with potentially dangerous winter weather approaching.

“Whether it’s the resources on our website or the conversations our underwriters have with agents every day, we do everything within our grasp to earn our customers’ loyalty,” Sandilla said. “When an agent brings a client to SFM, we understand that they’re trusting us to attend to that customer’s every need, and we’re grateful for every opportunity that gives us to succeed together.”

View more Agent Agenda articles

To enhance security, SFM is introducing multi-factor authentication and longer password requirements for CompOnline users starting January 5, 2024.

Our CompOnline policyholder portal is typically used by larger employers who expect to have workers’ compensation claims.

“We’re pleased to offer our policyholders a higher level of security for their workers’ compensation claim and policy data,” said Senior Vice President and Chief Information Officer Chad Hagedorn. “We’re working hard to offer high security standards while also making the experience user friendly for our customers.”

Setup process available starting November 6

To prepare for multi-factor authentication, CompOnline users will have the opportunity to confirm their email address and mobile number when they log in, beginning November 6.

They’ll also be prompted to reset their password if it’s under 12 characters to meet the new password length requirement.

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

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 CompOnline, as sharing accounts will become more difficult.

Policyholders who need to add accounts can either contact their CompOnline administrator or contact us.

Other portals moving to multi-factor authentication

We will be rolling out multi-factor authentication for all of our other online portals, including SFM Agency Manager (SAM), in the future, but release dates have not yet been set.

Learn more

To learn more about multi-factor authentication for CompOnline and other SFM portals, please visit our multi-factor authentication frequently asked questions page.

View more Agent Agenda articles

SFM will host another educational webinar for our policyholders and agents titled “Foundations of hiring and onboarding.”

Mark your calendars for November 15 from 10 to 11 a.m. and plan to join us as we discuss best practices for hiring and training new employees. Learn how establishing good fundamentals can increase employee safety and help your business succeed in the long run.

During the webinar, SFM workers’ compensation professionals will share their extensive knowledge on:

• Hiring process dos and don’ts
• The importance of vetting a potential new hire
• Proper onboarding and safety training
• How to handle performance issues post-hire
• Much more including a question and answer session at the end!

Head to sfmic.com/webinars to register, and to view previous webinars and brief videos on work comp topics including winter slips and falls prevention, best practices for injury reporting and return to work, the lifecycle of a claim, a breakdown of work comp benefits, an explanation of experience modification factors, and more.

View more Agent Agenda articles

Did you know you can get email alerts to help you keep up with your clients’ claim developments?  Through SFM Agency Manager (SAM), you can get alerts about the following:

• Submitted, closed or re-opened claims
• Claim reserve activity (reserves are set or increased over an amount you specify)
• Claim payments (payments made greater than an amount you specify)
• Changes to claim status or litigation status
• Policy cancellations
• Policy renewal due in a specified number of days

Additionally, you have the option to set up alerts for whichever policyholders you choose.

To set up or manage your alerts, click on “manage alerts” in SAM. If you have questions, don’t hesitate to reach out to your SFM underwriter.

View more Agent Agenda articles

SFM’s online resource catalog offers a wide range of educational resources 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.

SFM – the right choice for small business

A handout describing the benefits of breaking out work comp and making SFM your partner. It explains the benefits of a monoline carrier and illustrates SFM services that make us the right choice for small businesses.

​States where SFM provides coverage

Shows the states where SFM provides workers’ compensation coverage and the additional states we cover for employers’ out-of-state operations.

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

Claim packet – What to do if someone is injured at work

If someone is injured at work, this packet gives employers the materials they need to report the claim and help the injured worker return to work safely and quickly.

Employer liability limits

When employers purchase workers’ compensation insurance policies, a coverage called employer liability insurance is also included. This “Did you know” fact sheet provides basic information on this coverage.

Ergonomic tips for working from home

This presentation addresses common sources of working at home discomfort, provides education and offers ideas to improve your home office space when working from home.

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

View more Agent Agenda articles

Here’s a look at the promotions, awards, retirements, and other milestones of SFM underwriters so far in 2023.

January

• Heather Wylie transferred from the Special Investigations Unit to the Small Business Accounts team as an Underwriter
• Willie Kirchoff transferred from Claims Representative to Underwriter on the Small Business Accounts team

March

• Underwriter Patty Paulson retired after 38 years at SFM

April

• Michelle Reif transferred from the Premium Audit team to the Small Business Accounts team as an Underwriter
• Small Business Marketing Representative Mark Lewis made stops at 16 agencies as part of the “North Star Roadshow”

May

• Andrew Miller joined the Iowa/Nebraska/Kansas Accounts team as a Marketing Underwriter
• Jeff Magee was promoted to Marketing Underwriter Specialist on the Iowa/Nebraska/Kansas team
• Robbie Anfinsen was promoted to Senior Underwriter on the Small Business Accounts team

June

• Jason Kelley was promoted to Senior Underwriter on the Small Business Accounts team
• Senior Marketing Underwriter Ben Cason, who is on the South/Metro Accounts team, earned his Chartered Property and Casualty Underwriter (CPCU) designation

July

• Underwriter Debbie Sherman retired after nearly 34 years at SFM
• Jenna Lefebvre was promoted to Marketing Underwriter Specialist on the North/Metro Accounts team
• Senior Marketing Underwriter Connor Ferguson, who is on the North/Metro Accounts team, earned his Certified Insurance Counselor (CIC) designation

August

• Phil Roberts joined the Underwriting Technical team as an Underwriting Support Representative

September

• Robbie Anfinsen was promoted to Marketing Underwriter on the North/Metro Accounts team

View more Agent Agenda articles

SFM increased written premium and market share in every one of its core states in 2022, and results so far this year show continued momentum. Premium for the first quarter of 2023 came in well ahead of projections, up 12% from the same period the prior year.

Long-standing partners know that we believe in steady, measured growth, which brings value to both established partners and newly appointed agents.

Comparing market positions by state

SFM’s premium share is on the rise in all of its core states, according to an industry report issued this spring 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. While SFM’s presence as a leading carrier in its core territory is nothing new, this report provides important independent corroboration of SFM’s position in the market.

SFM’s carrier ranking in its top five states, based on 2022 written premium

(listed in descending order of total premium)

“In addition to expanding the lead we’ve held in Minnesota for over 20 years, it’s great to see that the majority of our growth is coming from our other core states,” said Senior VP and Chief Marketing Officer Mike Happe. “For example, we saw written premium in Wisconsin jump from $35 million to $51 million, showing strong growth in both the voluntary market and our assigned risk plan business.”

While building on its strong presence in the original five core states, SFM has also been making great strides in the more recently-added Kansas, Indiana and Tennessee.

Continued growth, new opportunities in Kansas

SFM began writing small business accounts in Kansas in the fall of 2020. Since that time, premium growth and loss performance in the state have been outstanding. In fact, between the years 2021 and 2022, SFM’s Kansas rank leapt by 16 positions according to the market share report.

“One thing that’s really helped us establish a presence in Kansas has been our relationship with Marysville Mutual and its agents,” said VP of Regional Business Shawn Miner. “Right out of the gate, this multi-line carrier embraced SFM as its work comp partner, and it’s been critical to our success.”

Recently, agents in Kansas have asked us to expand beyond small business and write their larger accounts as well. SFM chose to invite Kansas accounts over $25,000 in 2023, backing that decision with a commitment to add in-state staff to better serve these larger policyholders.

“We’ve been thrilled with our growth in Kansas,” Miner said. “To help with our growth, we’ve begun hiring underwriting and claim staff in the state to help provide an even higher level of service for our Kansas insureds.”

Positive early indications in Indiana

In the first 18 months since SFM made Indiana its seventh core state, progress has been remarkable. Policy count and premium are growing at a steady rate (with SFM’s Indiana rank jumping a whopping 21 places from the prior year in the SNL report).

“Our business in Indiana is really hitting its stride,” said Mark Lewis, Small Business Marketing Representative. “Indiana has proven to be a great state to do business in and we’re excited to see our growth continue there in the coming years.”

Tennessee market off to a strong start

SFM officially entered its newest core state of Tennessee in January of 2023. An instrumental step in the success of this new endeavor has been a partnership with Farmer’s Mutual of Tennessee (FMT Insurance), a multi-line carrier that immediately recognized SFM’s ability to serve its agents’ work comp needs.

“We’re pleased to get off the ground so quickly with these new relationships,” said Business Development Specialist Cody Allen. “Thanks to the support and efforts of our strategic partner (FMT Insurance), as well as referrals from existing agencies in our other states, we’ve quickly built up a solid agency force and new business is already exceeding expectations.”

SFM is actively working to recruit new agency partners, welcoming additional referrals throughout its expanding territory. If you know any agents who would be interested in learning more about working with SFM, don’t hesitate to refer them to Cody Allen. He can be reached at 952-838-4207.

View more Agent Agenda articles

Did you know that agents can play a role in their clients’ good hiring and safety training practices? Claims statistics show that new employees are more susceptible to injury. Those work comp claims come with a cost to the employer and can impact a company’s premium.

In this article, we’ll share some of our top tips for hiring and onboarding, and how you can pass this information on to your clients to help them get the right person in the role from the beginning and instill safety training from the start.

The right interview questions can help employers find safety-minded candidates

Asking about an applicant’s disabilities or past work injuries is prohibited by state and federal laws; however, employers can glean helpful information by asking other, related questions.

For example, an employer can use the job description to demonstrate the requirements of the role and ask whether the candidate can perform the tasks listed.

Employers can also ask them about their previous workplace safety training and if they feel ongoing safety checks are important.

Keep in mind that as part of the job offer, employers have the option to require a new employee to sign the job description to confirm that they can perform the duties outlined. Then, if a work injury does occur, the employer has the employee’s affirmation of capabilities documented.

Keep safety top of mind while training a new hire

Employers should include safety training as part of new hire onboarding and then follow up afterward to reinforce the training. SFM Loss Prevention experts recommend checking in three, six and nine weeks after a new hire is onboarded to answer any questions they have and to reinforce the safety training they heard early in their new role.

Share hiring resources

SFM offers several resources to help employers with the hiring process. We encourage agents to share these resources with their clients.

Hiring best practices CompTalk – This downloadable handout for policyholders offers hiring tips from the application period to the interview and through the job offer and vetting steps. Share this handout with clients so they can evaluate their current hiring process and make any helpful additions or changes.

How to hire the right people – This blog post written for policyholders is an easy-to-understand breakdown of hiring best practices. The link to this piece is easy to share with clients the next time you email them.

This is not intended to serve as legal advice for individual fact-specific legal cases or as a legal basis for employment practices.

View more Agent Agenda articles

SFM writes business in more than 400 class codes including key industries such as construction, healthcare, manufacturing, hospitality, social services and nearly any other “main street” business you can think of.

The following lists of our top 20 new business class codes by policy count and premium will give you an idea of where we’re seeing the most success.

Top 20 class codes by policy count

This chart shows SFM’s top new business class codes by policy count over the past three years.

Top 20 class codes by premium

This chart shows our top new business class codes by premium size over the past three years.

View more Agent Agenda articles

SFM recently hosted another educational webinar for our policyholders and agents titled “The Fundamentals of a Return-to-Work Program” and it’s still available for you to view. In it we discussed the importance of a good return-to-work program for any business type and outlined actions employers can take to positively impact the process.

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

View more Agent Agenda articles