Pineapple does not pool premiums, we distribute claims. This allows us to be fair, transparent and give you control over who you share risk with.
The Pineapple model is different
We believe the premiums that are not used to pay claims should go back to consumers. This leaves us in an independent position to evaluate claims as we do not stand to gain from underwriting margins.
We will still deny invalid claims to protect the community, but not for our own gain.
How we achieve this!
The premium you pay goes into your Pineapple wallet.
This wallet is used for the following purposes:
To pay small portions of claims of other Pineapple members.
If a claim occurs the wallets of all members contribute to paying this claim if it is approved by our independent assessors. If you are not happy with paying for overyone then you can build your own network by connecting to others.
See the article "How does connecting work?" for further detail.
2. To buy reinsurance and pay admin fees
Pineapple charges an admin fee at the end of every month. This fee pays for:
a) "Reinsurance" on wallets - Claims will always be paid even if wallets run out. To ensure that there is always enough money a portion of your wallet pays for reinsurance that guarantees that claims will be paid even if there is not enough money in the community's wallets.
b) Fees for administration - Keeping an insurance company up and running is quite a complex task. Your fees go toward policy administration, claims administration, wallet administration, software maintenance and transaction charges.
What is left is yours to withdraw
At the end of 12 months and with a 2 month reporting cool-down all wallets can be withdrawn in cash.
The 2 month cool-down is to ensure that all claims that happened in the 12 months have been reported by clients and settled by the wallets.