Frequently asked questions.

Ask first is conventional insurance really guaranteed? Insurers don’t always act ethically. Insurers can go broke. HedgeCall payments are trust-based. You are trusting that the members of the HedgeCrowds you choose to join do pay when called on. Members have a strong motive to pay – if a member skips a HedgeCall payment they forfeit the opportunity for further SocialHedge protection. Most people act ethically most of the time and everyone wants sound risk cover at the cheapest possible price.

The efficiency of an insurance process is measured by the gap between money insurers receive as premiums and money paid out in claims. Nationwide every year insurers collect many billions of dollars more than they pay out in claims. Conventional insurance is highly inefficient – many billions dollars paid by risk consumers just to cover insurer overheads and profits. This wasteful inefficiency is eliminated with SocialHedge. The gap between HedgeFee payments and HedgeCall payments is very small, expected less than 10 per cent.

We have two pricing options. Currently the HedgeMasters determine a conservative estimate of the number of risk events expected in any TimeBlock. The HedgeMasters can also assign risk weights to different categories of members. The Hedge creation tool sets a maximum HedgeFee payable in each TimeBlock based on these assumptions and the personal exposure defined for the HedgeWhipper. The second pricing option coming soon will allow members to define their own risk assumptions and be rewarded for accuracy.

Unlimited

Pooling creates default risk, fraud risk, increased costs related to trustee management and a transfer of capital before the risk calls for it. Pooling allows insurers to use your money to earn interest and invest or speculate. No pooling leaves the funds safely diversified across the group members, until the last second before a HedgeCall is made .

After the last HedgeCall in a TimeBlock is approved for payment the required HedgeFee for each RiskWhipper is determined automatically. Then the owners of the RiskWhippers are sent a payment alert. For convenience the HedgeFee payments are made to the same bank account always then automatically disbursed to the Hedgeants in short time intervals.

Regualtion is far more limited because there are no pooled funds.

The HedgeMasters define the operational rules which includes transaction currency, risk types and who is admitted as a member. HedgeCrowd members determine which members or even non-members get status of Assessor through a democratic voting process.

There is no practical limit to the number of unrelated risks that can be defined in a single RiskWhipper. The HedgeMasters decide which risk types are suitable for their HedgeCrowd. In HedgeCrowds that allow multi-risk RiskWhippers members can take RiskWhippers that involve one, some or all of the allowed risks.

It could not be much better. Members can see how many members are in the HedgeCrowd, how many HedgeWhippers exist in each TimeBlock, the maximum total HedgeFee callable in each TimeBlock, the called amount, how much was actually paid, bios of the Assessors, the terms of each Hedge is immediately accessible. The full history of all Hedge communications can be accessed with a click.