American Family Whittles 14 Claims Offices to 6

October 07, 2011, 11:30 a.m. EDT 1 Min Read

As part of a larger strategy to control costs and improve efficiencies, Madison, Wis.-based property/casualty insurance provider American Family Insurance is consolidating its 20 claims offices down to six, the company reports. American Family is part of The American Family Insurance Group, which has some 8,000 employees.

Of the 625 employees affected by the consolidation, all will be offered positions at other facilities, with relocation benefits paid by the company, American Family spokesman Steve Witmer said. Witmer admitted that the company does not expect all of the affected employees to take them up on their offer. For those employees, American Family will offer severance and job-seeking assistance.

"We do hope many employees will be able to relocate and stay with us," Witmer said.

The move will affect 30 some employees in Las Vegas, where the claims office will be closed as of January. The remaining 13 claims offices will close in August. According to American Family, the offices are in Appleton, Wis.; Fargo, N.D.; Indianapolis; Issaquah, Wash.; Kansas City, Mo.; Omaha, Neb.; Peoria, Ill.; Portland, Ore.; South Jordan, Utah; Springfield, Mo.; West Des Moines, Iowa; Westerville, Ohio; and Wichita, Kan.

This leaves six active claims offices in Eden Prairie, Minn.; Englewood, Colo.; Madison, Wis.; Pewaukee, Wis.; Phoenix and St. Louis.

The company confirmed that the consolidation will not affect its field adjusters throughout the 19 states where American Family writes business. Those adjusters will continue to meet with customers face-to-face to inspect and pay claims on damaged homes, businesses, farms and vehicles, the company said.

"This decision benefits our customers in multiple ways," Tim Constien, American Family's VP of claims, told the Milwaukee Journal Sentinal. "It improves our efficiency, which helps control costs, and brings our employees together to share ideas, collaborate and consistently do the things that matter to our customers when they have a claim."

Last month, American Family reported its storm and catastrophe losses for this year reached the $1 billion mark. The company paid out $1 billion in annual claims just twice before — in 2006 and 2008, according to Best's News Service, Sept. 20, 2011. AM Best says the insurer has a current Best's Financial Strength Rating of A (Excellent).