When you join the Pineapple community you are added to a general community and the funds in your wallet help pay for the claims that arise from this community.
Here is the problem, this community might contain fraudsters and worse than average risks. (As is the case with all insurance companies)
When you start connecting to people you slowly progress out of the general community and into a community of the people you connect to. The more you move into your own community the less affected your wallet is by claims from the general community.
When you reach around 150 - 200 connections you should be almost completely protected from the general community. This will result in your wallet being mostly unaffected by any claims that come from those people you have not connected with.
Who are good people to connect to?
- An estimated 38% of insurance claims are fraudulent. If you know people who will not be fraudulent, you should connect to them.
- People you care about. Your wallet will contribute more to the claims of those you are connected to. So if you want to see the money you spend on insurance in action helping those you care about rather than a faceless insurer, you should connect to those you care about.
- People who are paying more than they should. (If someone is a better than average risk for his objective profile.) For example... Your friend is a 22 year old male who drives a Golf GTI. He is seen as a high risk by insurance pricing models. Evidence suggests that these are high risk clients and they pay a lot of premium due to this.. However you know that your friend is a very safe driver and does not fit the mold of traditional pricing models. Your friend is better than objective metrics (gender, age, place of residence) suggests. You should connect to him, as he is a better risk than what his price suggests!
- The same logic as point 2 goes for the type of asset. For example.. If someone owns a drone, they are high risk items that carry a high premium. But you know that the type of drone is very resilient with a lot of safety features that prevent crashes. you should connect to the owner. You should connect to the owner, as his asset is a better risk than what the price suggests!
Do I have to connect to people?
You do not have to connect to anyone! If you are happy with the general community, you are more than welcome to remain in it. You will still benefit by receiving full insurance cover and all unused premiums back!
Can I disconnect from People?
Yes, the good news is that if you lose faith in one of your connections you can disconnect them without them being notified. That person will not be considered as part of your community for claims that occur after the disconnection date.
Will the connections of those I connected to affect me?
The community you create will be it's own unique community with you at the center. (Think Facebook friends). The connections of your connections will not impact you, unless you connect to them as well.
This sounds complicated? How is it governed and is it fair?
Achieving this level of complexity sounds almost impossible, right?
This is where our clever bot Nelson takes the stage. He/she/it/they governs the entire process and is completely fair.
If your community performs better than the general community your wallet will have more money left than the average in a perfectly fair proportion.
Insurance is about community and the many helping the few. It always has been. Until now you have never been able to control who you share risk with... Welcome to Pineapple!