Madison, Wis. (Oct. 5, 2011) — American Family Insurance will consolidate a total of 20 claim offices into six remaining offices by August 2012. By transferring responsibilities to other American Family claim locations, the company will maintain strong service levels at a lower cost to its customers.
Existing positions will be relocated from the 14 closing offices to the six remaining offices. Employees currently in those positions will receive opportunities to work at other American Family locations, with relocation benefits paid by the company.
"This was a difficult decision because of the impact it has on our employees, but a necessary one for maintaining our ability to provide a top-quality, cost-effective customer experience," said Tim Constien, American Family's vice president of claims.
"Consolidating our claim operations into fewer but larger offices benefits our customers in multiple ways. 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."
American Family will continue to have a strong contingent of field adjusters throughout the company's 19 operating states. These are adjusters who work from their homes and meet with customers face to face to inspect and pay claims on damaged homes, businesses, farms and vehicles.
The six remaining claim offices are in Eden Prairie, Minn.; Englewood, Colo.; Madison, Wis.; Pewaukee, Wis.; Phoenix; and St. Louis.
Constien said the decision about office locations was based on several factors including job market, real estate considerations and the ability to grow in a given location.
"We will need additional employees at the consolidated offices, and we hope many of our people will accept our offer of help and transfer," Constien said. American Family will provide severance benefits and job-searching assistance to those who decide not to move.
American Family offices to be closed are located in Appleton, Wis.; Fargo, N.D.; Indianapolis; Issaquah, Wash.; Kansas City, Mo., Las Vegas; Omaha, Neb.; Peoria, Ill.; Portland, Ore.; South Jordan, Utah; Springfield, Mo.; West Des Moines, Iowa; Westerville, Ohio; and Wichita, Kan.
The Las Vegas office will close in January 2012, with the others closing in August 2012.
Based in Madison, Wis., American Family Insurance offers auto insurance, homeowners insurance, life insurance, health insurance, business and farm/ranch insurance in 19 states. American Family Mutual Insurance Company is the nation's third-largest mutual property/casualty insurance company. Web: www.amfam.com; Facebook: www.facebook.com/amfam; Twitter: www.twitter.com/amfam.