Re: Self Insurance


Patrick McAneny
 

Teun, This idea came about after Bill & I spoke about insurance and he suggested self insuring.Which in the event of a total loss , would be too big of a hit for me. That got me thinking ,if a small group,but bigger the better , would spread the risk ,than the individual loss would be small.Then this weekend I was talking (emailing ) Kent about something else, then I threw this idea at him and he thought it had merit, and would put it out to the group. I followed up by posting what I sent Kent ,that hit on a few other points. 
 I guess Kent did put it out there to determine interest . I assume what Bill did was to organize a group insurance buy. I did not know that. One problem is that this risk co-op would need a paid administrator ,someone well organized ,to make it work. One person comes to mine, and it is not me,a more disorganized man ,you will never find.
Be Safe,
Pat
SM#123


-----Original Message-----
From: Teun BAAS <teun@...>
To: main@AmelYachtOwners.groups.io <main@AmelYachtOwners.groups.io>
Sent: Mon, May 18, 2020 1:49 pm
Subject: Re: [AmelYachtOwners] Self Insurance

Pat,
 
Agree; understand Bill ROUSE tried this over the last 2 years w/o success. But if we come up with a concept that as a group we would share part of the risk it might be different. It is now not so much anymore a matter of premium costs but it is becoming a matter of being able to get a quote at all on reasonable conditions.
 
Luckily I was able to get AMELIT insured for this coming year but the writing is on the wall.  I hope there is a member of the AYOG who has some experience in this. I would think this should be of interest to LLOYDS. My companies used to have a COMMERCIAL LLOYDS OPEN MARINE POLICY where we would declare at the END of each month what cargo we had on the high seas to be insured during that previous month; was all based on integrity (and the risk of an annual audit hahahahahaha).
 
First step might be to get an idea how many people would be interested in concept (synthetic or not) to get a feeling on the size of the pool.
 
Best Regards Teun
SV AMELIT  A54  #128
 
In storage on the hard in COOMERA (near BRISBANE) QLD AUSTRALIA
May 18, 2020 10:49:12
 
USA cell: +1 832 477 8842
AUSTRALIA cell: +61 5951 8909
 
 
 
 
 
From: main@AmelYachtOwners.groups.io <main@AmelYachtOwners.groups.io> On Behalf Of Patrick McAneny via groups.io
Sent: Monday, May 18, 2020 10:18
To: main@AmelYachtOwners.groups.io
Subject: Re: [AmelYachtOwners] Self Insurance
 
Teun, I have often thought if we as sizable sub group of Amel owners approached an Insurance Co. with a group buy ,if it would be possible to obtain better coverage at a better price. The same way groups obtain group medical insurance at a better rate than individuals. 
Just a thought,
Pat
SM#123

-----Original Message-----
From: Teun BAAS <teun@...>
To: main@AmelYachtOwners.groups.io <main@AmelYachtOwners.groups.io>
Sent: Mon, May 18, 2020 12:41 pm
Subject: Re: [AmelYachtOwners] Self Insurance
Hi Pat & Kent,
 
Since we might be able to make the point of: A) AMEL boats; B) AMEL owners - and therefore a lower risk (????) - combined with thoughts/approach similar to your concept below it might make sense to research a synthetic form by approaching an insurance company for a joint?
 
F.e: no USA insurance company is willing to write/cover my ASTON MARTIN but HAGERTY in MI specializes in this and insured at a lower premium than my the main USA insurers carry my BMW/AUDI.
 
Best Regards Teun
SV AMELIT  A54  #128
 
In storage on the hard in COOMERA (near BRISBANE) QLD AUSTRALIA
May 18, 2020 09:38:21
 
USA cell: +1 832 477 8842
AUSTRALIA cell: +61 5951 8909
 
 
 
From: main@AmelYachtOwners.groups.io <main@AmelYachtOwners.groups.io> On Behalf Of Patrick McAneny via groups.io
Sent: Monday, May 18, 2020 05:56
To: main@AmelYachtOwners.groups.io
Subject: [AmelYachtOwners] Self Insurance
 
This is a rough outline of a self insurance or shared risk co-op, that I sent Kent and thought I would share with the group. It was prompted by the hassle I have had with obtaining insurance, the restrictions and expense.  Bill suggested self insuring and just buying liability insurance, however in the event of a total loss, it would be a big financial hit, that I could not afford. However, if I could share that risk with even ten others or better yet many more, it would soften the loss. When you consider how few Amel's have been lost outside of a hurricane zone, the risk seems very low, and yet we need to insure against such a great financial lose.
 
1. A  LLC. formed
 
2. An administrator and board to accept membership ,assess deposit amount , administer funds and assess claims.
 
3. A one time deposit could be a percentage of agreed fixed value, perhaps 2 or 2.5% ,eg. $200,000 boat would amount to a $5000 deposit into the fund
 
4. Coverage would be for total loss , fixed value minus say 10% deductible. Figuring most owners could absorb some loss ,and insurance companies have deductibles as well. Hurricane zones excluded.
 
5. Perhaps lightning strike coverage , perhaps coverage would be ,replace with new equipment ,minus a 30 % deductible.This would probably be the largest source of loss. May have a surcharge or higher deductible for Florida locations.
 
6. All funds would be in an interest bearing account,if you can find anyone paying interest.
 
7. Upon leaving the group , the owner would receive a 50% refund of his deposit assuming they had no claims. 
 
8. Perhaps a .20% of fixed value annual fee to go to cost of administration .eg. $3000,000. boat x.20% = $600. annual fee
 
Assuming 200 owners/members at average boat value of $300,000 x 2.5 % = $7,500 deposit or $1,500,000.00 in funds.
a $300,000. loss of a boat would break down to a loss of $1,350. for each of the 200 members.
 
This could even work on a smaller scale . If ten owners shared responsibility for loss. $300,000 minus deductible of 10% ,would be $ 270,000.000 divided by ten owners or $27,000 per owner. Its all about spreading the risk.
 
I wonder why no group has formed a risk co-op as yet. Maybe because insurance used to be less restrictive and more reasonably priced .
 
Stay Safe,
Pat
SM 123
Shenanigans
 
 

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