Workers Compensation Flexibility is our Newest Midwest Family Advantage icon

Midwest Family Advantage Insurance Company (MFA) is a wholly owned subsidiary of Midwest Family Mutual (MFM). MFA began writing business in early 2018, but only the workers compensation line of business in our domiciled state of Iowa. This company has been a useful tool for Policyholders and Agents to meet the unique workers compensation needs of tough to write business classes and risks with higher mods and/or tougher loss experience. While MFM is filed with a .85 deviation in the state of Iowa, MFA is filed with a 1.10 deviation. Our strategy of filing slightly higher MFA pricing is something we plan to do in all non-monopolistic states within the MFM footprint. This not only allows us to write some accounts that don't qualify for MFM, but we will now be a market for monoline workers compensation in states where MFA has been filed and approved.

So where are we actively writing MFA business and where do we plan to expand? On April 1st, MFA workers compensation was filed and approved in the states of Idaho, Nebraska, and Illinois. In Idaho, we have filed a 1.15 deviation compared to a 1.00 MFM deviation, and in Nebraska, a 1.80 loss cost multiplier (LCM) has been filed and approved compared to a MFM LCM of 1.40. In Illinois, we filed a LCM of 1.95. Illinois is unique in that we are using advisory rates with a 1.00 deviation with MFM, but loss costs and a filed 1.95 LCM with MFA. The use of loss costs with one company and base rates with the other results in an approximate 23% increased premium on our MFA final rates. Ultimately, Midwest Family Advantage is not for everyone. Our more competitive MFM rates will be a better product for the vast majority of our customers and prospects. However, we're now in a better position to accommodate tough to place work comp risks. Furthermore, in states that have MFA filed and approved, we'll be less likely to be forced to non-renew valuable customers. We now have a better means to offer some form of renewal even if it's with a different company within the Midwest Family Group. Ultimately, our flexibility is your Advantage and that's why we're actively looking to roll MFA out in all of our non-monopolistic states.

Effective July 1st, we've filed and should be ready to write July 1st business in the states of Arizona, Utah, and Nevada. We're also hopeful to get MFA filed in the state of Minnesota, but COVID-19 has had an impact on that state's Insurance Department which has slowed MFA's admittance process. As soon as we're admitted, we'll be sure to file our rates, rules, and forms right away. Expect to hear more about Minnesota later in the year. In Arizona, MFA will have the same rates as MFM, but will be used primarily for monoline workers compensation risks. In Nevada, MFA will have a LCM of 1.85 versus a MFM LCM of 1.39. In Utah, MFA will have a LCM of 1.85 versus a MFM LCM of 1.34.

Midwest Family Advantage is in its early stages and has only been writing business in the state of Iowa until just recently. As such, MFA wrote $1.4 of written premium in 2019, but we expect much larger premiums now that we are able to write multiple state business in the Midwest. Our expansion to the Southwest states of Arizona, Nevada, and Utah will also accelerate our growth rate in the latter half of the year.

The greatest benefit of our Midwest Family Advantage offering is that the company will leverage the same great claims service as MFM. We're relying on the same adjusters for the claims process and simply sharing their cost across those two companies. That means that our policyholders will benefit from experienced claims examiners who will work hard to make sure that our Policyholders' employees are treated fairly and expeditiously to provide them the medical care they need and get them back to work within a reasonable timeframe. And that great claims service in conjunction with our underwriting flexibility is why 'Advantage' is in this company's name. We encourage all of our Agents to be aware of this great workers' compensation underwriting tool for their customers.

And once again, we thank all of you for your valuable business!

Aaron Boyd, MBA, CPCU, CIC
President & COO

Posted on Thursday, May 28 @ 13:00:38 -05:00
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COVID-19 Message icon

Midwest Family Mutual (MFM) has been closely monitoring the impact of COVID-19 on our industry, and on the business operations of our policyholders. Social distancing is being practiced throughout our nation, and school systems and non-essential businesses in affected states and districts are being closed. Please read below for important information on business policies as well as what MFM is doing to protect its employees and agents.

Work From Home...

Posted on Monday, March 16 @ 13:34:29 -05:00
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Midwest Family Insurance Group Posts a 93.7 Combined Ratio and AM Best Revises Outlook to Positive icon

Midwest Family Insurance Group comprised of Midwest Family Mutual and its wholly owned subsidiary Midwest Family Advantage has announced its financial results for the fiscal year ending on December 31st, 2019. Following are some of the highlights:

- The Combined Ratio for Midwest Family was 93.7.

- The Group ended with direct written premium of $194.8M up 13.3% from $171.9M in 2018.

- Total Company Assets as of December 31st,...

Posted on Saturday, March 07 @ 13:36:04 -05:00
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MFM Shows Profitable Growth in 2019 icon

This past year, Midwest Family Mutual was able to record its seventh consecutive year of profitable results while demonstrating superior growth. Our written premium for both MFM and its wholly owned subsidiary Midwest Family Advantage grew by 12.9% in 2019 to another record of $194.8M of written premium. With this kind of momentum, we're on the cusp of writing well over $200M in 2020.

Our 2019 combined ratio is estimated...

Posted on Tuesday, February 04 @ 09:47:08 -05:00
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Midwest Family Mutual Enters the State of Washington icon

Midwest Family Mutual Insurance Company (MFM) is now actively writing commercial lines of business in the state of Washington. This will serve as our 21st state, up from a 7 state regional carrier in 2008 when we started this extraordinary expansion effort. In the state of Washington, we will look to build our presence quickly. In the 1st quarter of 2018, we hired Andy Dickerson, an experienced marketing manager with...

Posted on Wednesday, December 18 @ 14:58:33 -05:00
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