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I have had experience with an  industry self insured group. I believe

that most of these groups, like ours, are organized to handle liability

insurance rather than accidents (hull). We had to form an offshore

company (Bahamas), hire a U.S. Company to manage quoting the individual

premiums, another company to manage the claims, along with our own Board

of Directors for the company.



The fixed overheads were high enough to require a substantial amount of

premiums before the project could be justified. The number of

participants was not huge, but certainly larger than the probable number

of Lancair IV owners who would join. The individual company premiums

were often over $100,000.



The major problems were:

1. A  few large losses could eat up all the company's reserves.

2. Whenever the market for insurance became more competitive, for any

reason, the regular insurance companies would cut their rates below ours

and many of our members would leave the plan.

3. In addition to the premiums, the members had to invest

Summary: Probably not practical for the small number of participants

and  amount of available premiums. What might be practical for the

owners who can afford it is to get a regular company to tailor a policy

based on VERY LARGE deductibles.



I presume that most of the accidents have been in low time planes. If

so, the high loss to premium problem will probably be self correcting as

the number of planes flying increases. In the meantime, perhaps the

insurance companies can be persuaded to look at the loss experience

among the older planes and adjust their premiums accordingly for these

planes.



For those of us who crash in new planes, the problem is mostly academic

anyway. Just depend on your mortgage insurance.