Blockchain-powered insurtech launches to 'disrupt' motor market
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.
"Motor insurance is ripe for disruption: it could significantly reduce prices if its model allowed it to operate with lower risk clients. Better still, we have a chance through the responsibility that comes with social proof to make roads much safer in years to come.”
Peterman explained: “Insurance is a $7 trillion stubbornly old fashioned goliath that could significantly reduce premium prices if its model could allow it to operate with lower risk
clients.”
“VouchForMe sees the blockchain innovation as an opportunity to improve efficiency, increase transparency, lower the costs of transaction processing, enhance the customer experience, improve data quality, increase trust between parties and support auditability, among other benefits.”
He added: “Our market research has shown that 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.”
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