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-   -   Insurance Perspective (https://vansairforce.net/community/showthread.php?t=63343)

Mike S 10-06-2010 03:15 PM

Thanks!!
 
Jeff, thanks for taking the time to explain all of this to us.

Really appreciated.

Flybuddy2 10-06-2010 06:16 PM

Jeff--I apologize...Not personally directed toward you, just expressing my (generally uninformed) opinion. I appreciate the fact that you did post and passed on an informed opinion and valid info. Insurance, overall, just never seems to add up to me. thx Tom

Kyle Boatright 10-06-2010 06:50 PM

Jeff,

A random question...

What happens if a monster T-storm comes through Oshkosh one year and balls up or seriously hail damages 10,000 airframes in one 15 minute disaster?

Are the underwriters sufficiently stable to handle $100,000,000 or more in claims?

John Clark 10-06-2010 07:31 PM

Chump change
 
Quote:

Originally Posted by Kyle Boatright (Post 473745)
Jeff,

A random question...

What happens if a monster T-storm comes through Oshkosh one year and balls up or seriously hail damages 10,000 airframes in one 15 minute disaster?

Are the underwriters sufficiently stable to handle $100,000,000 or more in claims?

One new A-380 costs over $350,000,000. I have to think that the financiers/leasing companies demand that they are insured.

John Clark ATP, CFI
FAA FAAST Team Member
EAA Flight Advisor
RV8 N18U "Sunshine"
KSBA

JDRhodes 10-07-2010 07:05 AM

Quote:

Originally Posted by Kyle Boatright (Post 473745)
Jeff,

A random question...

What happens if a monster T-storm comes through Oshkosh one year and balls up or seriously hail damages 10,000 airframes in one 15 minute disaster?

Are the underwriters sufficiently stable to handle $100,000,000 or more in claims?

Yes - But that would be quite an aviation disaster. I've worried about that before as one of those late summer black monsters gathers around OSH.

The insurance industry pays out $100 Mil in many airline disasters. But it does cut in to their obscene profits for the year;)

bkthomps 10-07-2010 08:22 AM

yeah, but what would the lead time be on vans kits after such an event.....be a moot point

Rick S. 10-07-2010 08:51 AM

Quote:

Originally Posted by fehdxl (Post 473627)
Jeff, Several years ago as the first dozen or so customer built RV-10's were being born, there was a gentleman in Arizona or Nevada (iirc) who was trying to put together a group of RV-10 fliers to unite and self-insure. Do you remember that discussion? If so, do you have any comments on the idea? I'll try and do some research and dig up the thread...not sure if it was on VAF, Matronics, or maybe even the Yahoo/James McClow forum. TIA, -Jim

That was me. The concept was based on several self insured groups I managed at the time. I approached several insurers who specialized in managment of such groups. They were interested and said it was a doable project. Basically the group would have a large deductible, boiled down to one RV-10 loss, after that an excess policy would cover anything above and beyond that. The key was to not have any losses for several years, building up members equity in the fund. If you wanted to participate we had mandatory risk reduction measures such as the ASF couses, FAA wings etc. The up front costs were not that bad but you had to make a financial commitment of one year contribution (premium) and a initial buy in to the program to cover setup. And yes, there would be risk of losing your investment. In the end there was just not enough people interested in risking their cash to become a member. Bullet dodged? maybe the only RV-10 fatality wsas one of the first to commit to the program. The soft market in insurance is another possible bullet dodged.

Pave Tim 10-26-2010 11:28 AM

Quote:

Originally Posted by Kyle Boatright (Post 473745)
Jeff,

A random question...

What happens if a monster T-storm comes through Oshkosh one year and balls up or seriously hail damages 10,000 airframes in one 15 minute disaster?

Are the underwriters sufficiently stable to handle $100,000,000 or more in claims?

My dad was in the insurance business for 50 years..not with airplanes though. For catastrophic losses, insurance companies have insurance companies. In other words, once a claim reaches a certain level, re-insurance kicks in...or if the company suffers multiple large losses (tornado's) then it kicks in. I think that is how it works.

My dad and I had HUGE arguments about insurance when I was young and stupid. Clearly, I always lost.

az_gila 10-26-2010 02:07 PM

Yes...
 
Quote:

Originally Posted by Pave Tim (Post 479348)
My dad was in the insurance business for 50 years..not with airplanes though. For catastrophic losses, insurance companies have insurance companies. In other words, once a claim reaches a certain level, re-insurance kicks in...or if the company suffers multiple large losses (tornado's) then it kicks in. I think that is how it works.

My dad and I had HUGE arguments about insurance when I was young and stupid. Clearly, I always lost.

...but when a company puts all of it's eggs in one basket (or homebuilts) and a large loss occurs - then they bail out and competion for your insurance $$ is lost.

This happened to our house policy after the Northridge earthquake - 20 th Century Insurance dropped all house policies because their basket had become too localised in Southern California. We had no damage or claims.

Insurance needs to be spread out over a very large pool.

sgoldin 10-26-2010 07:00 PM

900 x 100
 
jeff
Any chance interest for a product like this could be put together? EAA has it for Young Eagles so some re guy is doing it now? Just a thought.

In interest of full disclosure I was a broker in my working life.


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