How does Sanlam Indie make money?
A big part of our mission at Sanlam Indie is to inject a whole lot of transparency into the financial services industry, and that's why we're very happy to tell you how we make money.
Bottom line is, we're a business and, like any business, we need to make a profit to survive (and to keep bringing you some kickass 🎯 products). The money we make depends on how close premiums are to claims and expenses. It's pretty straightforward: When we calculate the premium you have to pay (in other words, the monthly cost to be insured), we take into account the expected cost of claims we will have to pay plus the expenses we will incur in building and running Sanlam Indie. We then add a little under 5% to that figure, and that’s our profit.
The profit we actually end up making depends on how reality compares to our expectations. If we have a lot more claims than we expected, or our expenses are higher than expected, then it's possible we could make some losses 😰.
If we have fewer claims, we would make more profits. In this case, you could expect us to lower the premiums for everyone 🎉, so that we could get back to more normal profit levels.
And there you have it!
This is not a get-rich scheme - if it seems too good to be true it usually is, except for Wealth Bonus, which is very good and very true 🎁.