The Anti-Cancer Commune's Comprehensive Plan to Strengthen Risk Control and Anti-Fraud (Important)

First, members must understand one thing: 99% of the people on our platform are honest, but a few will try to exploit loopholes and seek improper gains. As our influence grows, fraud is inevitable (in the international insurance industry, 10%–30% of claims are fraud losses; in China, 12% of fraud cases are related to insurance fraud). When such incidents occur, they come as a blow to members who abide by good faith. If fraud becomes frequent, the Commune cannot be sustainable. Recently we refused several aid applications, and during the investigations shocking events also emerged, which prompted us to roll out this series of plans as soon as possible.

Second, only sustainability is being responsible to members. When the platform cannot be maintained, everyone's contributions cannot be repaid and their rights cannot be guaranteed.

So, no matter how much we do to strengthen risk control and anti-fraud, it is never too much. After a period of studying related industries, full discussion and soliciting opinions, we will take the following actions in the near future:

I. Introduce a foundation to reduce the risk of fraud by the Commune's operators against members.

We are in contact with public welfare foundations to have them supervise the Commune's operations. The idle funds of Commune members may also be handed to a foundation for management.

At the same time, the Anti-Cancer Commune itself is considering converting to operation as a public welfare foundation, and is actively and proactively seeking relevant legal regulation.

In short, the Anti-Cancer Commune will put a tight headband on itself.

This issue will be resolved in 2016.

(Establishing a mutual insurance company is also an option, but constrained by China's financial policy and license management restrictions — we will try, but without much hope.)

II. Use multiple approaches in parallel to reduce the risk of fraud by a minority of dishonest members against honest members.

No single method can solve all problems; we must adopt multiple methods to solve the problems comprehensively.

1. Strengthen branch development and reinforce branch investigations.

We will require branch leaders and local members to conduct on-site investigations to verify the authenticity of beneficiaries. We will provide certain funding support for this.

The Anti-Cancer Commune will establish 2,000–3,000 branches in China; there are already several hundred.

The specific measures will be announced soon.

2. Introduce a transition-period mechanism.

The Anti-Cancer Commune requires no medical examination, which is convenient for some people who do not meet the Commune's joining conditions, and a small number of them will behave opportunistically. A six-month waiting period is not enough to filter them out medically, so we will introduce a transition period. Transition periods are often adopted by insurance companies, but we have added an innovation. Operationally, we will:

Starting February 1, 2016, the rights acquired after becoming a member will no longer be granted all at once, but granted day by day (a first for the Anti-Cancer Commune). A member's rights are spread evenly across 730 days and accumulate daily; after two years, the member obtains the full rights.

For example, Xiao Zhang, aged 30, joins the Anti-Cancer Commune with rights of 350,000 yuan (50,000 of which is obtained through invitation contributions). For each day he stays he earns 479 yuan of cancer aid rights, and after 180 days he becomes eligible to exercise them. If he suffers a serious illness on day 300, he receives 144,000 yuan in aid.

The transition period applies to members registered after February 1; for earlier members the old rules continue to apply, with cases negotiated individually when the aid is actually provided.

For past discussion of the transition-period issue, see: http://club.kags.com/thread-59783-1-1.html

3. Strengthen member oversight and set up rewards for member reporting.

At each public disclosure we will add a reporting function so that members can give feedback. We will also set rewards for reporting: 2,000–5,000 yuan for providing key clues.

This measure has already begun to be implemented.

4. Introduce members' social connections.

We need members, within a period after joining, to provide the personal connections that may be needed for investigation when they apply for aid.

The specific measures will keep being reflected in the account function.

5. Introduce social oversight.

We will fully cooperate with credible third parties — third-party verification of the Commune, news media, well-known local institutions and well-known figures — to take part in the review together.

Because conditions vary from place to place, the specific measures are still under study.

6. Set a deposit for aid applications.

When applying for aid, members must submit a 3,000-yuan deposit to cover investigation (the fee standard may be adjusted along with investigation costs). If fraud is confirmed, the deposit, after deducting the investigation costs, will be confiscated and used as future members' aid funds, with the fees publicly disclosed. The purpose is to raise the cost of fraud.

This measure has already begun to be implemented; so far no deposit has been received.

A Century Commune is the established goal of the Anti-Cancer Commune. To achieve it, our operations team will spare no effort. We hope members can share our understanding: the Anti-Cancer Commune's responsibility to members is not a matter of a day or two — only sustainability serves everyone's interests.

As for the Anti-Cancer Commune's operators, we promise not to take a commission from members' aid, and the importance we attach to anti-fraud also proves the Commune's responsible attitude. We hope members will support us.

Let us strive for a world where no one has to worry about medical costs!