Why Consulting Firms Are Building Their Own Insurance Captives

In this episode of Service Business Talks with Fexingo, Lucas and Luna explore why major consulting firms like McKinsey, Deloitte, and Accenture are increasingly setting up their own insurance captives — in-house entities that underwrite risk for their own operations and, in some cases, their clients. The conversation focuses on a specific case: Deloitte's 2024 decision to create a Bermuda-based captive for its global professional liability exposure, a move that saved the firm an estimated $40 million annually in premiums. Lucas explains how captives work, why the traditional insurance market has become less attractive for large professional services firms, and what this means for the broader consulting industry. Luna challenges whether this is a genuine innovation or just a tax-optimization play. They also touch on how and why smaller firms might follow suit through group captives. The episode includes a brief, topic-tied listener-support segment early on, encouraging contributions at buy me a coffee dot com slash fexingo. #ConsultingFirms #InsuranceCaptives #Deloitte #RiskManagement #ProfessionalServices #CaptiveInsurance #Bermuda #McKinsey #Accenture #Liability #PremiumSavings #SelfInsurance #TaxOptimization #AlternativeRiskTransfer #Business #FexingoBusiness #BusinessPodcast #ServiceBusinessTalks Keep every episode free: buymeacoffee.com/fexingo