Building a mission-driven captive: lessons from nearly 40 years of serving public sector housing

Troy LePage (pictured), chief operating officer and executive vice president of HAI Group, shares some lessons learnt by the company from its captive journey so far.

Mission-driven captives don’t just endure – they grow, adapt and empower their members to do the same.

HAI Group’s mission has always been clear: protect and empower the organisations that provide safe, affordable housing to families across the US. For nearly 40 years, HAI Group has served as a purpose-built insurance and risk management partner to the public and affordable housing sector, one of the most historically underserved markets in the insurance industry.

HAI Group was founded in 1987 after traditional carriers exited the public housing market due to perceived risk. In response, a coalition of housing authorities and industry advocates created its own solution: a member-owned insurance group governed by those who understood the mission best.

Over the decades, HAI Group has grown into a family of companies – including a captive insurer and a risk retention group – that has evolved alongside its members while remaining focused on the needs of public housing providers. Despite that growth, HAI Group hasn’t lost sight of its purpose. The mission remains the same – we’ve simply transformed how we carry it out. Our success is rooted in aligning our mission, members and financial discipline, earning an A (Excellent) rating from AM Best. That mission continues to guide our decisions, from underwriting and product development to reinvestment and innovation.

I’d like to share a few lessons from our journey – lessons that continue to shape how we operate and serve housing providers across the country.

“A captive can only succeed when its members are fully engaged and deeply supported..”

Governance grounded in the mission

Effective governance is central to the success of any captive, but especially in a mission-driven model. HAI Group’s board structure ensures every member organisation has a voice in strategic direction. Our directors are housing leaders first, with on-the-ground insight that helps our leadership team stay responsive to emerging risks and operational challenges.

Several committees, each made up of member representatives from across the country, help inform our board and ensure our solutions remain practical, relevant and responsive to member needs.

We also invest in board education and succession planning to prepare the next generation of housing leaders. This commitment helps maintain continuity and ensures our mission remains front and center.

Capital discipline with a purpose

One of the most important lessons we’ve learned over the years is that strong capital strategy isn’t just about stability. It’s about creating the capacity to adapt and grow with your members.

HAI Group maintains strong surplus levels to ensure long-term stability while returning value to members through dividend distributions. This model helps reduce the net cost of premiums and aligns our financial success with that of our members.

We also invest strategically to evolve alongside our members. When agencies began transitioning away from traditional public housing and adopting new programmes to rehabilitate or replace aging infrastructure, we launched an innovative insurance solution to meet their changing needs. It was a familiar moment. Just as we were founded in response to a crisis, this was another point in history where housing providers faced new challenges – and once again, we responded with a solution built around their needs.

That pattern has repeated throughout HAI Group’s history. As the housing landscape evolves, so do we, always working to support our members with purpose-driven products and services. For example, we established an in-house agency to help members secure coverage not offered directly by HAI Group, creating a one-stop shop for housing providers. We’re now in the process of rolling out a modern core insurance platform in phases. This system is designed to streamline service, improve data access and support future innovation.

Our financial model supports not only resilience but growth, giving housing providers the confidence to plan, invest and serve their communities effectively.

Deep member alignment

Another lesson that has guided us from the beginning is that a captive can only succeed when its members are fully engaged and deeply supported.

At HAI Group, our members are more than policyholders; they are owners, partners and collaborators. That shared stake fosters trust, transparency and accountability.

For example, this alignment allows us to champion a prevention-first approach to risk management. Each member has access to a dedicated risk control consultant to support risk-related activities and an account executive to assist with insurance needs or any other HAI Group services. This personalised support ensures our members have trusted partners they can rely on.

We further support risk management through property inspections, curated training and a comprehensive library of educational resources.

For broader industry knowledge and education, we offer more than 100 self-paced online training courses tailored to housing professionals, and our nonprofit research arm – Public and Affordable Housing Research Corporation – delivers actionable insights to support data-informed decision-making. We also actively support and participate in housing industry groups across the country. We don’t just sponsor events – we show up, make our presence felt and offer advisory support where needed.

We’ve awarded member agencies more than $10 million in grants for safety-focused projects in recent years and host annual contests for residents and staff that promote engagement through education. We’ve also prioritised cybersecurity awareness, offering educational campaigns and resources to help members navigate emerging threats, even when we don’t offer cyber insurance directly.

From fire prevention and digital risk to industry research and advocacy, we provide tools that help members succeed well beyond the insurance contract.

Mission is the foundation for longevity

Public housing agencies need more than coverage. They need consistency and a partner who evolves with them. Nearly four decades after our founding, HAI Group remains grounded in the mission that started it all. We’re not just built to endure, we’re designed to grow, adapt and help our members thrive.

Our model shows that when a captive is aligned with its members and guided by purpose, it can deliver lasting value, even in uncertain times.

Captives built on mission don’t just survive. They lead.

HAI Group is a member-owned insurance and risk management organisation serving the public and affordable housing sector. For more information, visit www.haigroup.com.

Troy LePage is chief operating officer and executive vice president, of HAI Group. He can be contacted here: tlepage@haigroup.com

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