Best Practices
of Member
Owned Group
Captives
Captive Resources, LLC
George Rusu – Chairman & CEO
Michael J. Kilbane – Co-CEO
Nick Hentges – President
Phoenix Transportation
Kevin Warren – Owner & CEO
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Long time member of a Captive Resources captive
Past President of Truck Insurance Ltd.
Current Captive Investment Fund Representative
Captive Resources LLC
Who We Are:
• 30 years in existence
• 31 member-owned group captives
─ A number of the largest member-owned alternative risk
facilities in the world
─ Developed one of the first member-owned group Benefits
Captive
• $1.5 billion in written premium
• More than 3,300 member companies
• Created and Oversee the $2.4 billion Captive Investors Fund
(established in 1994)
• Sister company, Kensington Management Group, the
largest independent captive manager in the Cayman Islands
Captive Resources LLC
Our Mission: To Provide Middle Market
Businesses The Opportunity To Control Their
Insurance Costs Through The Creation & Oversight
Of Member-Owned Group Captive Insurance
Companies
Ownership and Corporate
Governance
Ownership and Corporate Governance
 100% member-owned and controlled
• No external ownership or voting rights
 Equity across the membership
• One equal vote per member
• Majority rules
 Active member involvement
• Semi-annual offshore Board meetings
• Committee structure
• Only Board has decision-making authority
Member Commitment
Member Commitment
 Board meeting attendance
 Cultivate a strong risk management culture
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Safety/loss prevention & claims management focus
Attend captive risk control workshops
 Financial obligations
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To fellow captive members
Maintain financial strength of your own company
 Help to grow the captive
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Member referrals
Member Recruitment &
Selection
Member Recruitment & Selection
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Referrals from current members
Agent/broker education
workshops
Prospective member educational seminars
Collaborative selection process
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Prospective new member
Captive Resources
Agent/Broker
Policy-issuing carrier
Loss Control provider
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TPA
Independent CPA
Actuary
Current members
Member Recruitment & Selection
 Prospective member must meet the captive’s
requirements
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Premium size
Risk profile
“Cultural” fit
Comfortable sharing risk
Committed to safety/risk management
Member Education
Member Education
• Education is key to member satisfaction and the
captive’s success
 Begins early
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New member orientation
Mentoring programs
 Comprehensive
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Mission
Structure/Operating Flow
Finances
Member Responsibilities
Marketplace Dynamics
Member Education
• Education is key to member satisfaction and the
captive’s success
 Ongoing
• Educational Seminars
˗ Risk Control
˗ Financial
Investment Philosophy and
Disciplines
Investment Philosophy and Disciplines
 Preservation of Capital
 Effective and comprehensive asset allocation
policy
 Broad diversification and high quality assets
 Appropriate liquidity policies
 The importance of collateral
 Advantages of scale
 Off Shore vs. On Shore
Loss Prevention, Safety, Risk
Management
Loss Prevention, Safety, Risk Management
 Foundation/differentiator of CRI captives
• Significant investment/focus
 Customized risk control process
• By captive
• By member
Loss Prevention, Safety, Risk Management
 Extensive support provided
• RCA: in depth rating tool Safety Action
Plan
• Semi-annual safety/risk control workshops
• Monthly webinars
• Captive member portal
• Allocated loss prevention fund for each
member
• National Safety Council partnership
Conclusion
Early and ongoing education is key. It is imperative
that the members of the captive are well informed
and feel confident in the decisions they are
making.
Conclusion
Understanding and Knowledge of the
captive helps build “buy in” and long
term commitment.
Questions?