At the end of each month, fees are deducted from your wallet
These fees are only deducted if there is money left at the end of the month. The fee is based on total premium paid throughout the month.
If you want to get a feel for the costs that are generally occurred by an insurance company you can do your own research. Have a look at the FSB TABLES.
These fees we charge replace Management expenses, Commission, Underwriting profit and a portion of claims incurred in the traditional Insurance model.
You will find that our fee structure compares extremely favorably to the old model.
Your fees pay for the following:
Peace of mind fee: 15%
It’s our problem free philosophy - It means no worries, for the rest of your days -This fee gaurantees that all valid claims will ALWAYS be paid even if wallets run out.
Life is unpredictable, that is why we have comprehensive fully indemnified cover. When funds in wallets run out, claims should still be paid. And someone has to fit the bill.
It will come in particularly handy in the event of a fire,hailstorms, earthquake or flood.
Pineapple Juice is broken down into the following 3 items:
This fee keeps our devs fed, doors open, grows the community and allows us to manage all insurance activity (policies, claims, regulation) PS: This fee is included in the premium and well below the market average for these costs and replaces the services of an insurer.
A) Binder fee for Policy administration and calculation of policy benefits: 5% (Pineapple)
To maintain policies, accurate pricing (actuaries we are looking at you and your salaries), collect premiums (2% for a credit card purchase) and administer the cash back system is expensive business. We are are pretty efficient at what we do and hence only charge a 5% fee for this.
B) Binder fee for claims administration: 3.5% (Brolink - Santam administrator of the year 2017)
There is a lot of admin involved in ensuring that claims are not fraudulent, manning the call-centers and procuring suitable replacements. This 3.5% is worth every penny for the Pineapple community for the following reasons:
The money saved in claims expenses is significant. (we will, for instance, negotiate a 20% bulk discount on the replacement of iPhone's). This means a 20% reduction in wallet allocations. And you only paid 3.5%!
The Pineapple community would be at war if the community had to approve their own claims. So we have appointed in an independent expert / judge if you will.
C) Technology fee and fee for growing the community: 6.5% (Pineapple)
Someone has to build the technology, maintain it, host it and debug it! We also need to attract more people to the Pineapple community.
The more people there are the better for all of us:
The wallets be more stable as the amount of people that help pay for claims is more. R1000 divided by 10 people is R100 each. R1000 divided by 100 000 people is 1c each. This will also allow the system to absorb gradually larger risks such as houses, cars and businesses.
The more Pineapplers we have the better claims deals we can procure (in stead of doing a deal to replace 100 iPhones at a 20% discount, we will do a deal to replace 10 000 at a 35% discount)
Our goal is to bring these fees down over the long run and if you would like to help us achieve this, bring other people on board. More people means less volatility, less reinsurance fees and less marketing to grow the community. Also more bargaining power on replacements.