Hunter NelsonOwner of Nelson Insurance Agency

Captives & Self-Insurance: Is Insurance a Scam?

6 Feb 2026 · 1 min

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In this segment, Hunter Nelson argues that captive insurance structures are gaining popularity because many people—about 90% of those he talks to—view traditional insurance as a scam that profits excessively from policyholders. He expresses a strong preference for self‑insurance, citing his own experience of never filing auto or home claims and holding several million dollars in umbrella coverage without ever being sued. Nelson frames the insurance industry as a money‑making machine that takes advantage of customers, reinforcing his belief that self‑insurance is a more rational and cost‑effective approach for individuals and businesses.

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One last thing I'd really probably say on a captive is captives are becoming very popular. A lot of people think, everybody thinks, I mean, 90% of people I talk to think insurance is a scam. They're making beaucoup bucks off of me. I can't wait. I would so rather do, I would so rather self-insure myself, right? I mean, I just think about myself for my business, my, uh, my, my auto insurance, my home insurance. Also, I've never turned in an auto claim. I've never turned in a home claim. I've got a couple million dollars in umbrella coverage, never been sued. This stuff, like, the insurance company is making money off me, right?