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29 July 2024NewsAnalysis

Influential Women in Captive Insurance: Karen Hsi

Karen Hsi, Executive director of captive insurance programs, Office of the President, University of California

Karen Hsi plays an integral role in strategically planning and managing the current captive insurance programmes as well as formulating and designing new strategies to utilise the captive platform to finance university risks more efficiently.

Current captives under management include Fiat Lux Risk and Insurance Company, a single parent captive, Eureka Insurance Co PCC, Eureka One IC, an incorporated cell captive insurance company, and Sequoia IC, an incorporated cell of Eureka Insurance Co PCC. The University of California (UC) system consists of 10 University campuses, five academic health systems, and three national laboratories, incorporating more than 350,000 students, 280,000 faculty and staff, $36 billion of annual revenues and more than two million alumni living and working around the world.

Hsi is a proud alumna of UC, Berkeley. With 15 years of career experience at UC, she is well- versed in the risk management sector of higher education institutions. She was named in the captive power 50 top captive owners, “Ones to Watch” by Captive Review and was awarded the captive insurance industry’s “Rising Star” award, the Business Insurance “Break Out” award, and most recently recognised as one of the Captive International’s “Forty Under 40” future leaders.

How did you get started in the captive insurance industry?

During the early stages of my involvement within our organisation’s risk management team, I was given the opportunity to collaborate in the development and formation of our single parent captive. I saw owning your own insurance company as an innovative and forward-looking method to effectively manage cost savings and efficiencies.

Who inspired you or acted as a mentor in your career?

I had many inspirational mentors throughout my risk management career within UC. Two standouts are Cheryl Lloyd, one of my first managers and the previous president of our captives, and Rachael Nava, current UC chief operating officer and board member of our captive insurance companies.

More specific to my time in the captives sector, my previous manager, Courtney Claflin, was instrumental in teaching me about this niche field.

Many other industry leaders have inspired me and acted as coaches and mentors; most recently, I’ve formally connected with Anne Marie Towle through the CICA mentorship programme.

What do you think deters people from entering the world of captives?

Captives are a very specialised part of the insurance industry, so at times it may appear to be a nuanced and unapproachable topic for discussion. Career opportunities within the world of captives are not widely publicised for young professionals. On top of that, there are few prominent female leaders highlighted in the industry, which makes it very tough to envision yourself in leadership roles within captive insurance.

How can mentorship and sponsorship programmes be designed to better support the career development of women?

One of the key observations I’ve seen for women who are just starting out in their professional careers is their level of confidence and self-esteem. Mentorship and sponsorship programmes in the captives industry should continue to develop technical skills, but there is an opportunity for each of these programmes to further develop practices in overcoming intrapersonal challenges instrumental to developing strong leadership and networking skills.

“Mentors should be given further training on their interpersonal skills when working with mentees.”

In what ways can companies in the sector create a more inclusive culture that actively promotes gender diversity at all levels?

The creation of mentorship programmes within a company is especially important in creating a more inclusive culture and an invaluable method for helping individuals overcome obstacles, gain confidence, and advance in their professional careers. Mentoring within any industry, but particularly the captives sector, can be a very powerful tool for increasing empathy and promoting work equity, diversity, and inclusion.

What challenges are gender-specific to women in the captives industry?

This may not be siloed to the captives sector, but there are significant challenges in seeing women ascend to upper management positions as well as achieving equitable salaries compared to their male counterparts.

What solutions would you like to see?

Statistics have shown that those enrolled in a mentoring programme have greater success at work and are 20 to 25 percent more likely to receive salary increases, promotions, and stay at their current companies. According to Forbes, 63 percent of women have never had a formal mentor, primarily because it is difficult for women to seek them out.

It has been discovered that formal mentoring programmes are unexplored territory for many organisations. Since it is already intimidating for women to be proactive in seeking mentors, it would be beneficial to see formal mentorship programmes work on developing aspects of core leadership skills such as decision-making, negotiation, and creative problem-solving.

Mentors should be given further training on their interpersonal skills when working with mentees, so they can be equipped with the necessary skills to be effective. It is also essential for more women to come forward and vocalise their willingness to be a mentor, investing wholeheartedly in the relationships and time necessary to guide and inspire the next generation of women in the workforce.

What are your ambitions?

I would like to contribute towards gender and minority parity in leadership by identifying and providing leadership opportunities for other women and under-represented groups. I want to continue advocating and supporting fellow women in the industry, making mentorship culture the norm and not the outlier.

I aim to empower women in creating a network of “career investors/champions” who help mentor and coach individuals as well as shine a light on another woman’s accomplishments through their own leadership status and networks.

I have been a huge beneficiary of this type of support early on in my career and would want to make sure I continue to pay it forward.

Click here to read Captive International’s first Influential Women in Captive Insurance publication, celebrating the women transforming the captive sector through their sustained excellence and leadership. 

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