Re: Self Insurance

David Kurtz

I like the idea of a pooled self-insurance program.  There are any number of ways to go about it.  We could self-administer or find an individual or company that specializes in setting up these programs.  They exist out there.  Two early questions come to mind, among many more to follow.  1.  Some of us are buying insurance to allow cruising in a certain locale, such as the Mediterranean or Caribbean.  Others are purchasing policies to allow circumnavigations or in riskier areas such as the Arabian Sea.  The point being that we are homogeneous on some aspects (very seaworthy vessels and generally solid cruising experience), but not so homogeneous on others (home ports in hurricane zones vs. the Great Lakes, for example).  The actuary has to assess the various risks and price individual policies accordingly.  If done properly we should still see significant savings over a for-profit insurer.  2.  Even within the Amel owners we may wish to pre-qualify applicants to a group insurance program.  (And I say this as a new owner who just purchased an SM2000 as his first cruising boat of any size.  I might not qualify myself! ).  Regardless, you are by definition a limited number of participants, so there should probably be some basic qualifications required if you wish to attract a solid re-insurer such as Lloyd's of London.  My two cents worth....
Dave Kurtz
SM2 #380
S/V Celtic Cross

Detroit, Michigan

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