InsurTech startup VouchForMe has launched in the UK, aiming to disrupt and revolutionise the industry.

The blockchain-powered peer-to-peer model is based on social proof endorsements to reduce costs and lower premiums for policyholders.

The company has launched a pilot for motor insurance, which it expects to be followed by schemes for property, casualty, life and health cover.

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.

It claimed that this enables lower premiums and shared excesses for policyholders by only accepting risks that are guaranteed with a financial commitment, such as credit card details from an endorser who knows the driver.

Co-founder and chief executive Matt Peterman - who previously worked at 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.”

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