The insurance industry is experiencing a talent crisis, but the Butler University student-run captive is an important step forward, according to a panel at this year’s annual Bermuda Captive Conference.
Panellist George Leite, head of business development for Aon Insurance Managers Bermuda, suggested that the industry needs to fill 400,000 jobs because of imminent retirements in the industry and that’s why the Butler University student-run captive programme is so important.
Derek Dekoning of Butler University explained that the talent crisis is partly down to the lack of education about the captive insurance industry to millennials.
Dekoning said: “The biggest issue is a lack of knowledge of what the captive industry does and how it functions, some have no knowledge on the coverages that exist. The average student could summarise the basics, but they have no insight into what the insurance industry does.”
He added: “I think Zach Finn, the clinical professor and director of the Davey Risk Management and Insurance Programme at Butler University, does this well. He educates students to explain the huge depth in the industry and explains really fascinating pieces of what you can do. The Butler captive is a really good example of that.”
The Butler University College of Business student-run captive, the first of its kind, officially launched on 1 August this year after two years in the making.
The captive insurance company insures certain programmes, including the university’s live mascot, bulldog Butler Blue III, and any physical damage to university vehicles.
The aim of the captive is to give students hands-on experience and prepare them for an industry that is anticipated to need tens of thousands of new employees over the next seven years.
The captive is managed by Aon and domiciled in Bermuda.
Dekoning explained that there needs to be more focus on risk management programmes at universities to help students receive the experience and education needed.
The Davey Risk programme has a 100 percent job placement record, which is positive for the insurance industry.
Dekoning said: “Dedicated staff, such as professor Zach Finn, who are willing to take of these types of projects and risks are what make them so successful.”
He suggested that there are some universities that are not willing to provide students the funds or chance to cover such large risks.
Long-term plans for the student-run captive include providing renewals for the university every year and continuing to write and underwrite exposures, as well as reinvesting the captive’s profits into loss control projects.
There are also plans for a reinsurance structure and, in the fourth year of operation, the university aims to do another feasibility study to become a class 2 captive and move to third-party business.