Owners of SM#396, svPerigee, Australian registered, are interested in potential aspects of self-insurance within a group of AMEL owners.
Currently insured with: Pantaenius Australia, expiry Oct’20; FORM: comprehensive (all risks); Amount insured: ~AUD450k (~USD295k); Premium: ~AUD9k (~USD6k)
1.Owner: D&L Vogel
2. Hull Number: SM#396
3. Year boat built: 2003
4. How long owned by current owner: since Oct’16
5. Cruising experience
*Years sailing: 20+, on and off.
*Nautical Miles Sailed: ~10,000nm prior to ownership; since ownership ~16,000nm;
*Cruising ground in past: Australia QLD; Med; UK; US East Coast; Caribbean; Central Americas; South Pacific
*Future Sailing Plans: South Pacific, expect 3,000 to 5,000nm per annum
6. Last Out of Water Survey: Oct’16
7. Any Insurance Claims
*Year: no marine or aviation claims (non-current commercial pilot); Automobile, 2010;
*Circumstances: other car merged into me
*Amount of claim: ~CHF10k
*Amount recovered: unknown; I simply paid the insurance excess (deductible)
8. Are you interested in participating in a group insurance plan or a self-insured plan for members only? Potentially YES,
Understanding, based on quick read-though of the discussions:
Concept: covered only against total constructive loss @ 10% deductable; named tropical storm (subject to date/geographic limitations, and other caveats to minimise exposure) @ % deductible; or lightning damage @ % deductable (higher deductibles to 60% or even 80% for those making claims in known high-risk areas, such as Florida – basically, self-insuring against such risk in those known high-risk areas).
Annual premiums:  years buy-in “deposit” @ ~2.0% (~USD6k pa); thereafter annual top-up to cover annual losses due to claims plus annual contribution to cover operating/admin costs in order of 0.2% (USD600-pa). New members do the same. Co-insurance with underwriter to cover losses greater than  total-loss-claims in any given year. Notional buy-out is 50% of deposits paid, with an final adjustment paid after a further 5 years’ fund operation – that is, cash-value, not allowing for gains, such as interest received (and no refund of annual top-ups). Adjustment of annual premiums / calls etc conducted like a real-estate body corporate (administering shared common property) with a “sinking fund” (making provision for known future potential expenses/risks, only some of which may, or may not, come to be realised).
Proposal: Insured value is range-based on a value determined by AMEL owners’ cooperative – with provisions for / based on existing known (blue-book) depreciation schedules, with variation for various states of upgrades / maintenance etc. – that is, could not insure a well-maintained and operated year 2000 SM for, say, USD500k; only within a range of, say, USDk to USDk, diminishing at, say, [3-5]% in dollar terms for exceptionally well-maintained (all to better than OEM spec); [5-8]% for well-maintained (all to spec); [8-12]% for maintained ‘mostly to spec’; [>12]% for maintained less than spec … or whatever – has to be simple to do (for an owner to both do and to prove), and to externally assess.
Concept expansion: built assets to cover worst reasonably foreseeable losses for  years running; say,  hulls per year, for  years, = 25 hulls at weighted-average of USD350k @ 90% payout figure =~USD8.0m to fund the insurance fund. Basically, need to rapidly build to 250 hulls, each contributing 2% for 5 years, with no losses in the first 5 years (or with underwriting to cover any losses in the first 5 years). Consider that.
From: <main@AmelYachtOwners.groups.io> on behalf of "karkauai via groups.io" <karkauai@...>