In the dynamic world of captive insurance, the need for exceptional talent is higher than ever as the industry becomes increasingly complex. FairShare Insurance Company President Kirk Watkins explores how a more diverse workforce can lead to better business outcomes, and why “fishing in every pond for talent” is crucial for future growths
The captive insurance industry continues to become increasingly complex as regulations are updated, and companies find more innovative ways to maximise captives as a key corporate strategy to reduce cost and minimise risk. Whether initiating a captive feasibility study, complying with new domicile requirements, or channeling additional risk through a captive for added protection, the need for exceptional talent remains high.
The captive industry must continue to mirror the diversity pool of our clients and therefore cast a wider net in search of more diverse talent. This will ensure the longevity of our client relationships as we respond to evolving customer needs.
Through the years, the talent pool within the captive industry has changed. As the demographics of captive professionals have broadened, so have their abilities to understand, communicate, and relate to customers. This shift in employee diversity has both contributed to, and driven, improved operating performance.
This workforce evolution is visible at industry events, in leadership roles, and across a spectrum of captive service providers. Conferences such as the Vermont Captive Insurance Association (VCIA) annual meeting now feature dedicated mixers for LGBTQ+ professionals, panels on multicultural leadership, and internship programmes designed to attract and nurture diverse talent.
VCIA has long been regarded as a model for other industry organisations looking to emulate change and foster advancement.
Among some of its offerings to attract more diverse talent to the captive arena are:
- LGBTQ+ mixer: By hosting events that celebrate diversity and welcome all, VCIA sends a clear message of opportunity to those with differing backgrounds and life experiences. Serving the industry’s finest food, drinks, and laughter, these mixers bring individuals together for networking, exchanging ideas, and engaging in conversations in ways that underscore commonalities and forge lasting relationships.
- Diverse internship programmes: Rather than relying solely on professional networks to fill internship positions, VCIA actively recruits interns from a variety of backgrounds, including women, minorities, and international students. These programmes not only build a pipeline of future leaders, but they expose new talent to the unique opportunities available in captive insurance. This aligns with the movement seen among colleges and universities, as many have built and expanded risk management programs to satisfy the growing needs of the insurance community. With this increased demand, internship programmes also expanded as academic institutions placed more emphasis on emerging needs and talent diversity.
- Broad pursuit of talent: When it comes to recruitment, former VCIA CEO Kevin Mead advocates “fishing in every pond for talent”. By broadening the search, unconventional candidates are identified and introduced to this highly specialised business. This approach has been shown to bring new and fresh perspectives to captive operations where non-traditional thinking and approaches to risk are needed.
- Personal connections and exposure: VCIA champions the concept that talent and diversity efforts are most effective when they go beyond formal policy. Informal mentorships, cross-functional teams, and exposure to different cultures and life experiences are powerful tools for cultivating diverse talent while enriching current workforce experiences.
The captive industry has shown a willingness to embrace change and elevate individuals who have shown commitment to understanding and reimagining captive concepts and capabilities. This aligns with the reasoning behind many original captive formations and the need to address complex and emerging risks in non-traditional ways. This is only mastered by individuals and teams exhibiting creativity, critical thinking and viewing situations from multiple vantage points.
Both business and academic literature support the notion that diverse teams foster better business outcomes. Among frequently cited reports, McKinsey & Company released ‘Delivering through diversity’ in 2018 and its more recent ‘Diversity matters even more: The case for holistic impact’ in 2023. Deloitte explored similar issues and is noted for ‘The six signature traits of inclusive leadership’, released in 2016, and ‘Diversity and inclusion revolution: Eight powerful truths’ published in the Wall Street Journal in 2018.
A Boston Consulting Group study revealed that companies with above-average diversity in their leadership teams reported innovation revenue at rates 19 percentage points higher than those with below-average diversity in management according to its 2018 report.
Teams comprised of individuals with differing characteristics are also able to leverage a range of life experiences allowing them to more easily navigate the complexities associated with the non-traditional risks posed by international boundaries and global markets. Their ability to relate and communicate helps build much needed relationships and bonds of trust to conduct business.
Some organisations, particularly those with global interests, are prioritising diversity when selecting service providers. For example, some multinational corporations have adopted supplier diversity programmes and proactively look for partners who reflect their own values and commitment to inclusion.
This mindset and willingness to seek out high performers with a range of life experiences, views, and perspectives, can result in a distinct competitive edge. Captive managers and service providers who can transcend language and cultural barriers have a distinct advantage in wielding and closing a higher percentage of today’s deals.
While in-roads have been made in seeking more diverse talent within the insurance industry, observations and statistics from recent studies underscore opportunities for continued improvement:
According to the Bureau of Labor Statistics (BLS), women comprised approximately 59 per cent of the total insurance workforce in 2024. In fact, women have comprised about 59.6 per cent of the industry workforce each year since 2012. However, S&P Global Market Intelligence estimates women account for only 23 per cent of executives and officers at large insurers based on 2020 data.
Looking at workforce ethnicity within the insurance carriers and related activities category, BLS reports Whites comprised 77.4 per cent; Black or African Americans made up 14.7 per cent; Asians accounted for 5.7 per cent; and Hispanics or Latinos represented 12.8 per cent.
By comparison, the Insurance Journal reports non-white employees, including Black, Asian, and other racial minorities, totaled 15.3 per cent in 2010 based on S&P Global Market Intelligence data. Looking more closely at this data, Black or African Americans accounted for 9.0 per cent of the insurance workforce in 2010, while Asians represented 4.4 per cent. Those in the ‘other’ category represented 2.7 per cent of the workforce.
Based on recent statistics and reports, captive leaders and service providers are encouraged to continue to exert their influence with their non-traditional ways of thinking and conducting business. Emphasis on recruiting more diverse talent and casting broader nets in unconventional places will uncover hidden gems who can bring new perspectives to the conversation.
As captive leaders turn to the future, they will want to look for ways to grow their spheres of influence. One of the best ways to achieve this is to broaden the circle and welcome individuals with different life experiences and points of view. As different as these new-found colleagues may be in terms of gender, age, ethnicity, culture, or other preferences and life experiences, they share a common bond in their innate curiosity and natural interest in the captive insurance business.
And that is a strong foundation from which to build any bridge.
