Three 20-something year old’s secure R5.2m to take on insurance

By: Matthew Smith, co-founder at Pineapple

Pineapple is an Insurtech start-up based in Johannesburg, South Africa. They are South Africa’s first peer-to-peer insurer and the world’s first fully functioning decentralised insurer.

Pineapple has secured seed funding of R5.2m from Lireas Holdings, the strategic investment arm of Hannover-Re Group Africa, in return for a minority shareholding. This will assist them in bringing their innovative insurance offering to market.

The Pineapple focus is to revolutionise the way insurance is done, starting with the mechanics of the actual business model. They did the maths and noticed that todays insurance companies only provide R36 value for every R100 premium paid. This is due to excessive expense lines, unfair profiting and an abundance of fraud.

In short, they see the insurance business model and its delivery vehicles as archaic and believe it’s about time insurance was developed for the world of today rather than forcing yesterday’s solution into today’s packaging.

The Pineapple way of doing insurance accomplishes three main objectives:

  1. Remove the conflict of interest in insurance – Currently, every claim an insurer denies adds to their bottom line. This is an inherent conflict of interest whereby the provider of the service is actually incentivised to not follow through on their promise. Pineapple completely removes this conflict by returning ALL unused premium back to the hands of the consumer.
  2. Provide complete transparency – Showing you exactly where your premiums go and how they are used
  3. Reintroduce affinity into insurance – Connect with friends, family, trusted acquaintances to stop paying for fraudsters and bad risks who are currently ruining the insurance value chain. This also removes the need for the insurer to treat you like a criminal when you submit a claim.

Pineapple has built a world’s first in achieving a flexible, scalable and decentralised peer-to-peer insurer that provides fully fledged insurance coverage to its members.

The team at Pineapple want insurance to be fun. They want their new business model to be accompanied by an intuitive user experience which takes the hassle out of insurance.

To do so they have built their systems using technology such as AI, MongoDB and ReactNative with a blockchain integration coming soon.

“Our true innovation of creating a decentralised peer-to-peer insurer is only as good as how well we can deliver that business model to our users. This drives us to be absolutely meticulous when it comes to our user experience in order to minimalize the friction of getting insured.” – Pineapple Co-founder Matthew Elan Smith.

Pineapple will soon be available on both the Play store and Apple app Store. Pineapple will allow Android or IOS smartphone users to instantly insure items they hold near and dear in a fair, rewarding and frictionless method.

The best place to follow their journey is on Instagram (@Pineapple_SA). You can also find them on Facebook, LinkedIn and Twitter.

They are also giving away a limited amount of early access spots at to those that join the queue. And special rewards to those who help spread the word.

Related posts

Discovery Insure and Advanced EMS launch private firefighting initiative in Johannesburg


Risks facing financial institutions


How to keep dad’s special gifts safe this Father’s Day


Santam Appoints New Head of Niche Business Insurance