When Captive Resources was created over 35 years ago, the company’s founders set out to answer a simple question: How could they reimagine commercial insurance to benefit insureds rather than insurers?
Companies relying on commercial insurance programs were — and still are — plagued by challenges such as a lack of control over premiums and little emphasis on helping reduce the cost of risk.
Captive Resources, which earned the No. 1 ranking among mid-size employers on the Tribune’s 2022 list of Top Workplaces, as measured by the consultancy Energage in Exton, Pennsylvania, decided to try a new approach. It developed a member-owned group captive model that allows companies to become stakeholders in their own insurance company. For group captive members, the result is greater control over insurance coverage, premiums that are based on actual loss experience, a safer workplace and the potential to earn dividends for better-than-expected loss performance.
“Typically, when buying traditional commercial insurance, it’s often guaranteed cost, meaning, regardless of what my losses are and the company (that) pays them, I have no chance of getting any money back — no investment income on the money, Captive Resources CEO Nick Hentges said. “We take the opposite approach.”
“We allow the people who participate, the insurance buyers, to participate in risk, and most of their losses are less than anticipated,” Hentges said.
Through effective risk control programs, Captive Resources provides group members purpose and direction. Professional consultants partner with the member and Captive Resources. Services include an industry best practice risk control assessment, action planning to prevent and control losses, hazard surveys, training and more.
Together with Mike Foley, co-CEO and president, Hentges is responsible for the overall representation of the Itasca-based company to its clients and shares direct responsibility for the strategic planning and day-to-day operations of the company — including production, administration, risk control, claims, human resources, finance, legal, information services and travel.
Captive Resources owns and occupies a six-story building, but the pandemic put flexible work arrangements, especially working from home, in the spotlight. “We have a beautiful place for everybody to work and then COVID hit, and we immediately went to remote work or work from home,” Hentges said. “We’re back to two days a week in the office and three days a week working from home. If people want to work more from the office, they can. We don’t limit anybody’s time in the office.”
The company requires that employees are in the office on Mondays for team meetings and in-person interactions.
“We allow them to pick one other day that they are in the office,” Hentges said. “We try to make that second day a consistent day so we can know when people are coming and going to help plan any additional in-person meetings as needed. But there is some flexibility to that as well.”
He added, “That routine seems to work really well for our folks, and we just haven’t seen any letup in the service to our clients or the performance of our colleagues. So we’re pretty happy with it. We are able to attract really good folks who want to spend more time at home, but we are also able to keep our culture. We think it’s important that people see each other and get to know each other and build those relationships as well.”
Chief human resources officer Rose Frieri said Captive Resources fosters an open and transparent culture. “We keep colleagues apprised of our company’s overall performance and important initiatives, and we openly ask for opinions, ideas and concerns,” she said. “We recognize new ideas and always respond timely.”
Frieri explained that the company’s business model requires candid and ongoing communication to help ensure the highest level of service to clients. “We believe we owe the same frequent and open communication to our colleagues,” she said. “This begins in the interview process, and all colleagues are continually encouraged to express their opinions and especially their ideas.”
Sandra Springer, senior vice president of marketing added, “It is our collective intellect that helps to distinguish Captive Resources as the leader in group captives. Having said that, we have created and nurtured a culture that embraces this basic tenet of openness and communication. And once new colleagues become immersed in that culture, they feel comfortable speaking up.”
Attracting, retaining and motivating the very best talent begins by providing excellent compensation, outstanding benefits and flexibility to attract, reward and motivate colleagues.
“We also feel that recognition is key,” Frieri said. “We let our colleagues know how important they are to the success of our clients and to our company, and that they are truly appreciated. Every colleague knows they are a very important member of our team, and consequently, they feel personally connected, not only to the company but to one another.”
She pointed out that the company strives to provide fair compensation, noting that the pay for employees is fair and above average. “We evaluate regularly to ensure our increases meet or exceed the industry,” Frieri said. “We have many positions that include incentive-based pay and in recent years have provided numerous bonus opportunities for our colleagues to share in our success.”
Captive Resources regularly sponsors charities and participates in initiatives such as an annual food drive benefiting the Itasca Community Food Pantry, to help those at risk of hunger. The company participates in area blood drives to aid others when they need it most.
It also supports the Grabowski Scramble Golf Tournament, an annual event that helps fund innovative research in the fight against brain cancer.
Colleagues have united multiple times to assist the nonprofit Feed My Starving Children, providing about 50,000 nutritious meals for children worldwide. Captive Resources also was part of the Illinois Unified Relay Across America for the 2015 Special Olympics World Games in Los Angeles.
Other charitable activities have included making fleece tie blankets and gathering donations for care packages given to cancer patients by Phil’s Friends, and raising over $100,000 for the Northern Illinois Food Bank to help those struggling during the coronavirus pandemic. Colleagues also donated 125 pounds of candy to Operation Gratitude for distribution to deployed troops, local military units, veterans and first responders.
Brenda Richardson is a freelance writer.
