Can Social Proof Change The World?
Social Proof has the potential to revolutionise the way we live our lives — from New Year’s Resolutions to Car Insurance.
Do you ever make New Year’s Resolutions? How successful are they? You will not be alone if you admit that you struggle to stick with them. But there are things that you can do about it.
Better Results with Social Proof
One website claims that you can increase your chances of success by (i) adding a financial penalty if you break a resolution (ii) getting a referee who will objectively judge if you have met your goals (iii) involving other people to support you to meet the goal.
This is an example of “Social Proof”, where you change your behaviour due to social norms about what is correct and proper.
It’s also the concept behind behind the revolutionary insurance and blockchain business InsurePal www.insurepal.io
InsurePal — “Social Proof Insurance”
Launching in the UK in 2018, InsurePal car insurance is designed to make the UK’s roads safer and help safe drivers save money — all by means of Social Proof. InsurePal offers you to save up to 30% to 50% on the costs of your car insurance by finding someone such as a relative or a friend to guarantee you against future at-fault claims. They become your “Social Proof”. With UK premiums costing drivers £755 per year, on average, and a staggering £1719 average cost for under-25s, InsurePal could save drivers hundreds of pounds per year.
How does it work?
Social Proof As An Indicator of Risk
Today safe drivers subsidise the cost of bad drivers, with insurance companies finding it extremely hard to ascertain if you are a safe driver when you purchase a policy. InsurePal lets your relatives or friends guarantee you as a signal that you are a safe driver. They will receive a bonus for guaranteeing you (say, £50) but if you make a claim in the next 12 months that is due to your fault, they will have to pay back your discount plus their bonus and a small penalty fee (e.g. £250 discount + £50 bonus + £50 penalty fee = £300 exposure). They effectively have to make a judgement about how safe a driver you are, based on everything they know about you. As a result, they will only guarantee you if they feel truly confident that you will drive safely. On the flip side, if you are ensured you should drive more carefully, knowing that reckless behaviour could cause your guarantor a penalty.
“If your friends trust you, we trust you” — InsurePal CEO Matt Peterman
Rewarding Safer Driving
The Social Proof guarantee dissuaded bad drivers from joining since they will cause penalties to their guarantors and end up paying more than the market rate for insurance premiums. This will be compounded by the fact that safe drivers can get multiple people to guarantee them as a signal that they are safe. As InsurePal goes viral in the UK, it will act to promote safer driving, instead of subsidising bad driving.
InsurePal hopes that once you have saved with them, why would you ever go back to the “old” way of buying expensive insurance?
UK Pilot, Global Rollout — with Blockchain at the Core
InsurePal is launching its first pilot in the UK — the heart of the $7.3 Trillion global insurance market - with global platform roll-out to follow based on a worldwide patent. In fact, once the platform is setup it could be easily evolved to different kinds of insurance (think Personal Possessions, Home, Health or Life Insurance). The UK was chosen as a lighthouse market to prove the Social Proof concept given the abundance of Millenial consumers and the high cost of motor premiums; if it can be done in the UK it can work anywhere.
InsurePal will be built on the Ethereum blockchain so that each time you are guaranteed it is recorded in a transparent public ledger (InsurePal “token”, IPL). Over time, these repeat records of you as a trustworthy person become a kind of “Social Proof TrustScore”, which could help you secure cheaper insurance and loans across a whole host of financial services. In addition, InsurePal is set to become a critical player in the insuring of Blockchain business transactions. As InsurePal CEO Matt Peterman says, “if your friends trust you, we trust you”.
The InsurePal ICO will support the UK launch of this revolutionary model, offering IPL tokens that can be used to pay for insurance policies once the platform has been launched.
Take part in the InsurePal ICO to make the world a better place without even having to worry about your New Year’s Resolutions.
>> Read the InsurePal Whitepaper here
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