Pineapple, who claim to be the world’s first fully functioning decentralized insurance provider, recently announced that they received their FSP licence
They made the announcement from their Instagram handle @pineapple_sa, which has over 22 000 followers on Tuesday. The post shows them opening an envelope from the FSB containing their licence.
Co-founder Matthew Elan Smith stated that they were considering creating Pineapple “on the Etherium blockchain as this technology does allow one to build financial solutions outside the regulatory framework”.
They decided to go the route of playing within regulation. The reason behind this was a survey they ran earlier in the year in which they asked the question:
Which TWO of the following characteristics would be the most important to you when trusting a new insurance brand?
Co-Founder Ndabenhle Junior Ngulube, stated: “To us it is all about the consumer and what is best for them. This is the first question we asked when making and decision. We were not convinced that blockchain technology inspires trust to the man on the street yet, but it is definitely in our long term plan”
The core of what they are trying to achieve lies in the following question which was also posed in their survey.
Do you feel like your premiums contribute toward a social good when you don’t have a claim? (i.e Helping other South Africans in their times of need/disaster?)
They believe that people are missing the most beautiful part of insurance. Insurance is about people banding together to protect eachother to a far greater extent than if they were to go it alone.
“This is the core of insurance, people protecting people – The financial embodiment of a community”
The team believes that the beauty of insurance is unfortunately hidden behind a veil of complexity and inefficiency. The user of insurance never sees the real good their premium does nor has the ability to identify & protect themselves from free-riders on the system that commit fraud and behave poorly to the detriment of all participants.
This lack of transparency and affinity leads people to think of insurance as a personal savings account when it is in fact a community savings account that is managed by an insurer by controlling the pricing, risk and claims.
Co-Founder Marnus van Heerden added that they”..see they value that regulation adds in protecting the consumer and providing peace of mind… Why complain when you can comply?”
They launched an early access queue on their website www.pineapple.co.za which currently has over 3150 sign ups. And are hoping to beat global and international records at launch. Adding that their early joiners will be rewarded in-app and with a special surprise, but the true reward being part of a more enjoyable, rewarding and cost effective insurance solution.