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Sure it's a good idea but the details are very important here. I understand that this is just a preliminary concept and I'm not trying to tear holes in it......but here are the things that crossed my mind.
1. Who would insure the insurance company? Let's face it, as much as we may hate paying for health insurance or property insurance or the FDIC for that matter, the integrity of the insurer is usually not in question. But as a startup I'm not sure that you'd carry any such weight.
2. There are books right now that claim insurance already. Be it Lloyds or whoever. We don't pay for it or for that matter know whether it really exists. My guess is that if your idea flies....every book that doesn't sign up will either claim insurance anyway or form their own insurance company....real or otherwise.
3. Every book out there claims IN BIG WORDS we are 101% safe and secure blah blah blah. Now let's say some of these books sign up with your deal. Somewhere on their web site or brochure is going to be the info on your insurance protection. So basically it'll be we're as good as gold but here is an insurance policy you can buy in case we fail?
4. If the gov't were going to come down on the books it would probably be on more than one. I'm not sure that your policy could claim....with a straight face that you could cover that. Even gigantic insurance companies will face quarterly loses because of floods and hurricanes. These are companies with billions of dollars in assets making profits in the hundreds of millions of dollars yearly. I would suspect you're more than a tad undercapitalized to claim that individuals would be covered "in the event of gov't action".
Just some random thoughts.
1. Who would insure the insurance company? Let's face it, as much as we may hate paying for health insurance or property insurance or the FDIC for that matter, the integrity of the insurer is usually not in question. But as a startup I'm not sure that you'd carry any such weight.
2. There are books right now that claim insurance already. Be it Lloyds or whoever. We don't pay for it or for that matter know whether it really exists. My guess is that if your idea flies....every book that doesn't sign up will either claim insurance anyway or form their own insurance company....real or otherwise.
3. Every book out there claims IN BIG WORDS we are 101% safe and secure blah blah blah. Now let's say some of these books sign up with your deal. Somewhere on their web site or brochure is going to be the info on your insurance protection. So basically it'll be we're as good as gold but here is an insurance policy you can buy in case we fail?
4. If the gov't were going to come down on the books it would probably be on more than one. I'm not sure that your policy could claim....with a straight face that you could cover that. Even gigantic insurance companies will face quarterly loses because of floods and hurricanes. These are companies with billions of dollars in assets making profits in the hundreds of millions of dollars yearly. I would suspect you're more than a tad undercapitalized to claim that individuals would be covered "in the event of gov't action".
Just some random thoughts.
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