[Commune Leader's Reply] Why Have Cost-Sharing Contributions Increased? Does It Mean the Commune Has Corrupt Elements or Embezzlement?

Judging by current statistics, this month's actual deductions will still be lower than the estimated cost-sharing at the start of the month, which shows that members' participation remains strong. And next month's cost-sharing will be substantially lower than this month's.

Below we summarize common questions about cost-sharing, in the hope of dispelling your doubts.

Why was cost-sharing lower before and higher now?

Because previously few members across the Commune held the right to receive aid, so the probabilities did not fully show themselves. And in the early days there was less adverse selection among members; now adverse selection has increased.

As more and more members of the Commune hold the right to receive aid, cost-sharing will come ever closer to the average incidence rate in society.

Why do some platforms have low cost-sharing?

New platforms generally have relatively low cost-sharing in the early period, because few people have passed the waiting period and thus hold the right to receive aid, while many people take part in cost-sharing.

As more and more people hold the right to receive aid while the number of those taking part in cost-sharing grows ever more slowly, the cost-sharing amount will rise sharply.

Shouldn't more people mean lower cost-sharing?

No. The more people there are, the more people fall ill. If the rules and the members' circumstances were completely identical, a commune of one million people and a commune of five million people should have equal cost-sharing.

How will KangAi Commune keep cost-sharing within a controllable range?

Since September 2016 we have carried out reforms in response to some situations — waiting periods, transition periods, stricter vetting — and we have focused on the work of visiting teams, to reduce fraud losses as far as possible and partly overcome adverse selection.

How much money will be needed each month in the future?

That figure is determined by the scope of members' rights and the overall health of the members in the relevant commune. The mutual-aid industry has developed for only a short time and there is not yet enough data to analyze its user base; the predictions made by actuaries in the early days have diverged enormously. The whole industry still needs more observation before actuarial forecasts can be made.

How should we assess the Commune's cost-sharing?

The Commune has run for six years, consistently maintaining a prudent approach and the ambition to build a Century Commune. The relationship between members' rights and cost-sharing is one of our key focuses; we hope to offer cost-sharing that everyone can afford, and we keep improving our work at all times.

As the pioneer of online mutual aid, KangAi Commune has seen a series of its innovations followed and imitated, including some of the flaws in its systems, so some problems are hard for the whole industry to solve. The Commune will maintain prudent innovation and overcome the difficulties.

I can no longer afford the current cost-sharing. What should I do?

1. Reduce the number of dependents you manage on behalf of relatives and friends; each one you manage on behalf of may add to your cost-sharing.

2. Drop the communes that are not important to you — for example, you need not join the Anti-Cancer Commune, the Serious Illness Mutual Aid Commune and the Death Commune all at the same time.

3. On the premise that you are confident you have enough ability to withstand risk, withdraw from the Commune.

How is it ensured that recipients are real? Have the funds been embezzled?

Every case at KangAi Commune goes through the following procedures:

1. A third-party professional investigation company (if the application for aid comes immediately after the waiting period, two companies investigate simultaneously);

2. A visit by local members;

3. Public disclosure for at least half a month, with member oversight and rewards for reporting;

4. Several further procedures, including the Commune's own review;

5. Extreme transparency. Every instance of assistance publicly discloses the recipient's receipt and the bank transfer records (see the funded cases in the disclosure section), and can withstand scrutiny.

In the Commune website's "Transparency" section we have collected all the material we have publicly disclosed and the historical bank transfer records; every case can withstand scrutiny.