Pineapple has refreshed the workings of the Pineapple Juice to clarify how it works and make it simpler to understand.
What is Pineapple Juice:
Pineapple Juice rewards Pineapplers as a community, for good management of their insurance risk.
Each Pineappler’s premiums are calculated by our clever actuaries and are determined based on the predicted risk they add to the community. This is the basis of insurance - sharing risk and being able to help each other in time of need.
The Pineapple Juice will be paid as a discretionary premium refund retrospectively at the end of each Pineapple Year.
The Pineapple Juice will be determined based on the following:
Keeping the lights on - There should be sufficient premiums after expenses and other related costs to make sure that the Insurer can continue to operate to continue insuring and growing the community and that the Insurer has complied with all its legal requirements.
Behaviour of the community - Should the performance of the Pineapple Community be more favourable than what our “not as clever as they think” actuaries predicted.
I.e Pineapplers claimed less than expected, and therefore the premiums charged were more than what was required for the expected claims.Risk mitigation by you - These relate to how you contribute to the overall Pineapple Community’s Performance, and are things such as:
Responsible driving (for example - not driving under the influence or over speed limits.)
Looking after your vehicle (for example - parking in a safe space and locking your vehicle.)
Should there be Pineapple Juice available to pay out, to be eligible to receive Your Portion you will need to:
Have paid all your premiums on time, AND
Have a Pineapple insurance policy with uninterrupted cover that is still active at the end of the Pineapple Year
Frequently Asked Questions (FAQs)
Q1: What exactly is Pineapple Juice?
A: Pineapple Juice is our new rewards program that offers a potential premium refund at the end of each Pineapple Year. It's designed to reward our community of policyholders for good risk management and contributing positively to the overall performance of the community. Please see above for full details.
Q2: How is Pineapple Juice different from the previous profit share mechanism?
A: Unlike the previous profit share system, Pineapple Juice is more straightforward and focused on community performance. It's based on a combination of our community's overall claims experience and individual contributions to risk mitigation. Please refer to the above for full details on what factors go into calculating the benefit.
Q3: How can I be eligible for Pineapple Juice rewards?
A: To qualify for Pineapple Juice, you need to:
Pay all your premiums on time.
Have an active, uninterrupted Pineapple insurance policy at the end of the Pineapple Year.
Q4: How is the Pineapple Juice amount calculated?
A: The amount is determined based on:
The overall financial health of the insurer.
The performance of the Pineapple Community compared to actuarial predictions.
Individual risk mitigation efforts, like responsible driving or properly securing your property.
Q5: Can you give an example of how Pineapple Juice is calculated and distributed?
A: Sure! Let's say the Pineapple Community had fewer claims than expected in a year, and you consistently paid your premiums on time while also practising good risk management, like safe driving. Based on these factors, a portion of the total premiums collected may be refunded to eligible policyholders like you, proportionate to your contribution to the community's positive performance.
So as a simple example: if you paid R10 000 in premiums for the year of R10 000 000 total premium paid by the Community, and the insurer declares Pineapple Juice of R1 000 000, you will receive your pro-rata share of the Pineapple Juice being a R1000 refund. Calculated as 10 000 / 10 000 000 *1 000 000 = 1000 refund.
Q6: When will Pineapple Juice rewards be paid out?
A: Rewards will be calculated and distributed retrospectively at the end of each Pineapple Year, which runs from 1 January to 31 December, after a cooldown period of 3 months. This cooldown period will allow the clever actuaries and accountants to finalise and audit the numbers payments will be settled. Therefore rewards are calculated based on the period 01 Jan to 31 Dec each year but only paid by 31 March the following year, after the cooldown period.
Q7: Are there any actions I can take to increase my portion of Pineapple Juice?
A: Yes! Engaging in responsible behaviour that reduces risk, like installing a home security system or attending a defensive driving course, can positively impact your eligibility and potential rewards.
Q8: Will my earned profit shares from the old system be affected by this change?
A: No, all earned and qualified profit shares up to 31 December 2023 will be paid out as per the old system. The Pineapple Juice program begins on 1 January 2024.
Q9: Am I eligible to receive my Pineapple Juice if I leave after the year?
Yes. As long as you were an active Pineapple policyholder at the end of the year and paid your premiums on time, you will be eligible to earn your Pineapple Juice for that year, once it is paid by 31 Mar in the following year, even if you had to leave thereafter.
Q10: Do I have to have been a policyholder for the entire year to be eligible to receive any Pineapple Juice?
No, as long as you are a policyholder at the end of the period, 31 December, you will be eligible for your portion of Pineapple Juice. However, your portion of the Pineapple Juice will be proportionate to the premiums you have paid and so if you only had an active policy for 2 months before the end of the year you will receive less Pineapple Juice as someone who is paying the same premium but had an active policy for 12 months of the year.
Understanding Key Terms in the Pineapple Juice Rewards Program
Q1: What does 'Pineapplers' mean in the context of Pineapple Juice?
A: 'Pineapplers' refers to all policyholders who have an active Pineapple insurance policy with us. If you have a current policy, you are a Pineappler! Otherwise known as the Community.
Q2: What is meant by 'Pineapple Year'?
A: The Pineapple Year is the period from 1 January to 31 December each year. It's the timeframe we use to assess the community's performance and calculate Pineapple Juice rewards.
Q3: Can you explain 'Performance' with regards to the Pineapple Juice?
A: 'Performance' refers to the collective risk mitigation efforts of Pineapplers and the overall claims experience of the Pineapple Community. It's a measure of how well our community manages the risks insured by us, which can impact the amount of Pineapple Juice distributed.
Q4: What does 'Your Portion' mean?
A: 'Your Portion' is the share of Pineapple Juice you're eligible to receive, calculated based on your individual contributions to premiums collected during the Pineapple Year, as well as your individual risk management behaviour.
Q5: What is the 'Pineapple Community'?
A: The Pineapple Community encompasses all Pineapplers with active policies during a given Pineapple Year. It's the collective group whose performance influences the Pineapple Juice rewards.
Q6: How does 'Risk Mitigation' affect my rewards?
A: Risk Mitigation refers to the actions you take to reduce the likelihood of filing a claim. This can include safe driving practices, home security measures, and regular maintenance of insured property. Effective risk mitigation can positively impact your ultimate claims experience, eligibility and amount of Pineapple Juice.
Q7: What is meant by 'Discretionary Premium Refund'?
A: A 'Discretionary Premium Refund' is the potential return of a portion of your paid premiums. It's not guaranteed but is determined annually based on the financial health of the insurer and the performance of the Pineapple Community.
Q8: What does 'Insurer' refer to in the Pineapple Juice terms?
A: 'Insurer' refers to Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply.
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