American Family Insurance boosts workers minimum wage from $15 to $20

MADISON, Wis. — Hundreds of American Family Insurance workers will see a boost in their paychecks after the company announced it raised its minimum wage to $20.

According to a news release Friday morning, American Family Insurance group companies are raising their minimum hourly rate “to attract and retain talent and create a positive impact on employees and communities.”

Company spokeswoman Clare Hendricks said that previously, the minimum wage for American Family workers differed from entity to entity, but in general, most were at $15 per hour before the raise.

The rate increase is effective retroactively going back to Jan. 1, 2020, American Family said. Nearly 1,700 employees are included in the raise. The group employs nearly 13,500 employees across the country.

“Offering competitive wages not only helps ensure we attract and retain customer-focused employees, it also allows them to invest in their careers, dreams and communities,” Gerry Benusa, enterprise chief people officer, said in the statement.

The minimum-wage increase to $20 per hour will affect employees in customer service, claims, administrative and other roles, the company said.

The increase applies to all companies within the American Family Insurance group, including American Family Insurance, based in Madison; Homesite Group, Boston; The General, Nashville; Main Street America, Jacksonville, Florida; and others. It also applies to American Family Connect Property and Casualty Insurance Co., the proposed new legal name of a De Pere-based Ameriprise Auto & Home Insurance that American Family said it acquired in October.

According to the company, Madison-based American Family Insurance group is the nation’s 13th-largest property and casualty insurance group and ranks No. 306 on the Fortune 500 list. The company sells American Family-brand products, including auto, homeowners, life, business and farm insurance, with independent agents in 19 states.