Insurance Pal funds social premiums
Peer-to-peer insurers Insure Pal is hoping to raise £15m in an Initial Coin Offering to fund its UK motor launch in the first half of 2018.
Insure Pal offers lower premiums for those able to gain ‘social proof’ guarantees from friends and family. By accepting only risks that an endorser guarantees with a financial commitment, the company says it can offer lower premiums through a form of peer pressure. Endorsers are also rewarded with tokens, which may be used for their own discounts, sold or kept as an investment.
Insure Pal uses the Ethereum blockchain platform as a technology base for transactions.
Co-founder and CEO Matt Peterman, said, ‘Insurance is a $7.3tn stubbornly old-fashioned goliath that could significantly reduce premium prices if its model could allow it to operate with lower risk clients. In the case of Insure Pal, the social proof that benefits these responsible clients with big discounts also carries embedded value in its underlying IPL token currency.’
The ICO will close on 16 January 2018. Insure Pal’s motor pilot is expected to be followed by schemes for property, casualty, life and health.