Originally by: Fifth Symphony

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So this insurance you provide is mainly aimed at players that want their T2 ships and/or expensive modules completely insured. I can see this would definitely be attractive, but here's a few hard questions for you:

1. What is the length of your insurance contracts?
2. What is your policy on self-destruct?
3. Do you have any measures to protect aganist people who use friends/alts to simply blow up their ship to claim insurance before the contract expires?
4. Do you think you have the capital to maintain this kind of a business long enough to weed out all the unscrupulous people who purchase your insurance?

And your website or related information links would be appreciated. Thanks.

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Originally by: EBANK Ricdic

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Make sure you set it to require API verification on Kill Mails.

Hell you could probably get really*****y with this setting up a script that automatically handles claims with an API parser but that might be a little too advanced atm

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Originally by: Insurance Broker

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Ambo: tbh 0.0 PvP'ers are not my target customers, you are all a massive insurance liability, looking at your loss record you'd never be a customer due to what your rating would be.

I don't need to win with every single customer, I just have to win overall which I believe is very doable.

Also the point of me going live the way I am is to prove it works without risking any isk other than my own.

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Originally by: Insurance Broker

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Ambo: tbh 0.0 PvP'ers are not my target customers, you are all a massive insurance liability, looking at your loss record you'd never be a customer due to what your rating would be.

I don't need to win with every single customer, I just have to win overall which I believe is very doable.

Also the point of me going live the way I am is to prove it works without risking any isk other than my own.

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Originally by: Ambo

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Lol, very true. Last night was the first time I've had a fight in 0.0 and not died. Shame I didn't get a kill either but there we go.

If you exclude PvPers then I suppose there is a chance this could work. I'm still dubious about potential profits but you seem to be on the right track.

Good luck in any case, you'll need it.

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Originally by: Jackie Fisher

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Originally by: Insurance Broker

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Who is your target customer then? It looks very much like the people who would want to use your service are the people you won't/can't insure and the people who you would want as customers are less likely to use you as their ship losses are limited and would not justify substantial insurance costs.

Does your insurance cover faction/officer items? If so how much Isk reserve do you have to cover pimped mission ships etc?

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Target customers are people who don't die but want a little safety net, so I guess that'd be miners, mission runners and haulers when I think about it. While I'd like to insure PvP'ers because they'd get insurance, it's because they'd make a huge gain which would be my loss. The fund is starting at 500mil so I'd be starting with massive insurance cover, there is a limit of a single insurance cover been worth 20% of the fund.

Originally by: MilowFV

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I am guessing he is trying to target mission runners and highsec haulers. Say for some strange reason I want to haul 2.5 billion isk worth of stuff in my freighter to Jita it might be worth it to me to hedge my possible lose by taking out insurance.

I am not sure I personally would do that as I hate taking hugh risk with stuff when I can minimized it and have time to waste, but others might feel it worth paying for insurance depending on the cost and carrying the cargo all at once for the time saving.

Best of luck and I will keep an eye on how this is working out for you.

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You hit the nail on the head on target customers, not that it was my intent when I started but it quickly became apparent that these were the type of customers that'd make this business work.

Originally by: Anas Damona

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If the payout is capped at say 90% of the modules value, then it's never worth your while blowing up your ship for an insurance payout (not in pure ISK terms anyway). It still takes the sting out of the loss though, so it's possible to run an insurance business, it's just a matter of number crunching.

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All items are coverable, if my system can't get a price for a item destroyed then a dialogue would be open to discuss a reasonable value for the item. It is recommended if the item is a non market item to evemail first to find out what it'd be valued at in terms of payout.

It's good to see that the general attitude is good luck, though I'd get shot down as insane

Originally by: Hastur DragonTooth

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As stated previously an Insurance company's business model won't work in Eve. Contrary to popular belief, insurance companies generally don't make a dime off their policies. Most of them actually lose $.05-$.20 on every dollar in premium. There is however a lag time between when premium comes in and those exact same dollars are used to satisfy whatever claims are made.

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Originally by: Hastur DragonTooth

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As stated previously an Insurance company's business model won't work in Eve. Contrary to popular belief, insurance companies generally don't make a dime off their policies. Most of them actually lose $.05-$.20 on every dollar in premium. There is however a lag time between when premium comes in and those exact same dollars are used to satisfy whatever claims are made. The Insurance company invests those premium dollars during that lag time in various businesses and that's how they try to make a profit. Think berkshire hathaway, it's not just an insurance company but a massive holding company.

You would also have to keep a reserve, an amount to cover all the expected claims. Since you can't quite rely on statistics to gauge say the # of ship losses during the summer months it'll be awfully hard to calculate your reserve.

You not only would lose money hand over fist as you would be hard pressed to find consistent investment returns for the likely level of capital if you were successful, but you would likely fold within the first month when you find yourself constantly increasing reserves.

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Originally by: Hastur DragonTooth

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Nope, they rarely make money on the underwriting business. Take into account whatever you wish, even abstract terms such as "time value of money" and the loss ratios still show the underwriting business generally lose money. Pick your favorite insurance company, look at their financials and look for the Combined Ratio. If it's 100 or over, they're losing money on their underwriting book.

You can gain a further understanding that insurance companies don't really have much confidence in their underwriting by they way the policy is actually covered. You may think you have an auto policy through State Farm, say. Well, their logo might be on the letterhead but in the backroom it's not that true. While they wrote the policy, they aren't really insuring the entire policy. Their competitors might through agreement have the first 20% of the policy, another company the next 20% and the original underwriting company might only have 50% or less of the policy. If Insurance were really their main business and there was confidence in their underwriting this would not be the case.

The difference between the real world and Eve, is as I stated, investment outlets for high levels of capitalization to cover their poor loss ratio. Combine that with the level of reserves for, in a real world corollary, insuring tanks during a time of war.

If you think the business model will work then I got a bridge to sell you.

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