Insurtech start-up VouchForMe, a blockchain-powered peer-to-peer insurance model based on social proof endorsements, has launched in the UK with the aim to “disrupt and revolutionise the insurance industry”.
VouchForMe uses peer-to-peer model of ‘social proof’ endorsements to reduce costs and lower premiums for policyholders.
The company has launched its pilot for motor insurance, which, it said, is expected to be followed by schemes for property, casualty, life and health sectors.
Using the Ethereum blockchain platform as a technology base for transactions, VouchForMe uses a form of peer pressure to encourage and sustain better behaviours, such as safer driving, among policyholders.
VouchForMe said it enables lower premiums and shared excesses for the insured by only accepting risks that are guaranteed with a financial commitment, such as credit card details from an endorser who knows the driver.
Its co-founder and CEO Matt Peterman, latterly from insurance fraud detection company Salviol, said: “Research has confirmed our sweet spot as we progress the UK launch. The greatest need and highest potential is among drivers at the intersection of high premiums, low ability to pay and self-perceived good driving skills.