Hi Joan,

Per our conversation, I had related reading about how Tesla (the car company), after seeing high insurance rates being assigned to their very safe cars were able to offer their own auto insurance in such a way to reflect the habits of individual drivers of Tesla vehicles. By maintaining a good “Safety Score” their system will actively discount their car insurance on a monthly basis, because they offer the insured the ability to dynamically alter their driving habits to increase the Safety Score displayed on their dashboard. It becomes a game for the driver, which has resulted in their becoming safer operators and reducing their insurance costs. Win-win!

I thought something like this might be considered for the members here. Particularly those who have never filed for assistance, and who are now seeing significant increases in their monthly costs.

It should be possible to offer discounted rates to members who have not placed any burden on the contributions they’ve made to this shared resource. Such a system could be tiered to offer a range of discounts based on how much assistance they have requested and/or were given over a previous number of months (quarterly? half year? annual?).

Additionally, a discount could also be based upon the achievement of some number of consecutive months without taking anything from the share pool. So, those who have needed assistance are being encouraged to avoid unnecessarily asking for help over things they maybe could pay out of pocket.

Doing something like this would be fair to all, as compared to using actuarial-based age statistics alone as the determining factor. A decidedly unfair “shotgun” approach, which in this age of computers is obsolete as more granular data can easily be gathered and assessed.

There will always be outliers across all age groups who would qualify for this kind of discount, and this could be applied accordingly based upon the data already being gathered. 

The best thing about such systems is how it changes the “game” aspect which is integral to any system like this. People tend to fixate on maximizing the benefits they perceive/receive based upon the rules they agree to “play” by. When folks are rewarded for their efforts to reduce their burden on the share, they are less likely to put a lot of effort into seeking all they can from the generosity of the share program. It turns the tables, making the rules of the game geared toward reducing their monthly contribution rather than trying to get the most back.

 

I hope this might be useful.

 

Thanks,

 

John Holland