Does anyone know how to start up mutual insurance? Basically, the way it works is you get a group of like minded people who need insurance, they pay premiums into the fund and the pool is used to finance payouts. The big difference between mutual and regular insurance is that motor insurance companies use historicaldata to calculate your premium - that means that all the accidents/thefts that have occurred up to now are used to calculate how likely you are to have an accident. It means that there is NOTHING you can do to lower your premium except get older.
On the other hand, a mutual scheme is controlled by the members (so all have an interest in it staying financial). The main thing is all members must comply with certain requirements to better prevent accidents. For mutual FTO insurance these might include:
1. Regular roadworthy inspections by someone suitably qualified and authorised to inspect FTOs/Jap imports, etc
2. Must complete defensive driver's course
3. All vehicles must have certain anti-theft features
The overall goal is to have suitable insurance at a lower premium than is currently available from a normal underwriter.
So, that's the idea - anyone think it can be done? For background on how it's done commercially try http://www.fmglobal.com/about/
