Butler University’s Captive Insurance Program Offers Hands-On Learning

Most educational institutions focus on classroom-based activities and learning theories from whiteboards.

But there's no better way to improve your skill set than by getting out there and trying your hand at risk and insurance in a real-world setting.

That's exactly what Lacy School of Business at Butler University offers through its captive insurance program.

Believed to be the first of its kind, students can learn firsthand how a captive insurance company works and run it themselves, deciding what risks to take on and insure.

The single-parent captive, which was formed in 2014, is also used to self-insure several high-value assets on campus, including the university's official bulldog mascot, Butler Blue IV; a bomb-sniffing dog; the oldest telescope in Indiana; a number of Steinway pianos; a rare book collection; and other fine arts owned by the institution.

It is also used to insure the products that junior students sell commercially as part of a project for their Real Business Experience course.

"We have the only student-run captive in the world that insures elements of the campus," said JJ DeBrosse, director of graduate and professional recruitment at Butler University's Lacy School of Business. "That means students can come into a safe environment and academic setting and experiment with a real-life captive."

Tailored Programs

Butler University runs four tailored programs aimed at improving the skillsets of captive insurance professionals. These are the master's in risk and insurance, Butler Insurance Academy, the Cyber Risk Management Certificate, and the Enterprise Risk Management Certificate.

Each course addresses the need for ongoing education of those working in or alongside the industry, equipping them with the specialized knowledge and expertise needed. As well as providing individuals with a deeper understanding of captive insurance, they also prepare them for leadership roles within the sector and further their professional growth and development.

The master's in risk and insurance is a 20-month online program designed for students wanting to gain a greater understanding of the industry and move into leadership roles. It covers property and casualty, benefits, risk, and captives.

"Many risk and insurance programs tend to be specific to certain areas of the industry," said Mr. DeBrosse. "But ours covers everything from property and casualty and risk to benefits and captives.

"Even if you are, for example, working on the risk side of the business, you need to have a broader understanding of the other three elements as it's more than likely you will be interacting with other people or departments that deal with them at some stage. From a leadership perspective, the program is designed to help take individuals to the next level of their career."

Captive Exposure

It's the captive element of the program, though, that appeals to many students, said Mr. DeBrosse. Once they learn that they will get to use a real captive on the course, they become very excited, he said.

"So many people in the industry may have heard about captives but haven't delved into them in any great detail as they weren't under their job remit or their company decided not to go down that route," said Mr. DeBrosse. But when they get to experience them firsthand, they learn about the benefits they can bring.

"Captive insurance is a growing industry, and it will continue on that trajectory," Mr. Debrosse continued. "As increasingly more states grow as a captive domicile and more companies decide to form a captive, as a risk and insurance professional, you need to have the knowledge about them as a basic."

Such is the success of Butler University's programs that 80 percent of students in the master's in risk and insurance program have moved to a more senior role in their company within a year of graduating. Alumni have also moved on to other organizations and established themselves there.

"One graduate in Texas moved from industry into the association side and now does the training for The Institutes," said Mr. DeBrosse. "Another, who is risk manager for a multibillion-dollar medical company, is now on the board for RIMS International.

"It's great to see all of our students progress and ascend the ranks. And we're seeing this success story across the United States from Phoenix, California, and Texas in the West to the East Coast and the Midwest.

"The great thing about our programs is that students and even staff are constantly learning about what's new and changing in our industry and adapting to it accordingly. And having our own captive is a big part of that learning curve."