Yesterday, December 17th, the Ohio-based insurtech start-up, Branch Insurance, rolled out its new program called Vouch for Me. The said program aims to help consumers cut insurance costs by requesting a “vouch” from other Branch customers, they could get up to 5% off their coverage.
The CEO and co-founder of Branch, Steve Lekas, revealed how they came up with the innovative program. According to him, the creation of Branch was deeply rooted in their belief that the community has the power to make insurance better and affordable for everyone. The company created Vouch for Me program out of the same belief. If someone was vouched by a Branch customer, proving that he or she is a trusted community member, Branch would reduce the insurance price by 1%. Hence, by leveraging the power of the community, the company could determine whether new customers are likely to commit fraud or not.
Thus, aside from helping people save money, Branch considered its new program a useful tool to combat insurance fraud. This is no doubt a valuable program considering the latest reports from the FBI. The federal agency disclosed that the total cost of non-health insurance fraud reaches more than $40 billion every year. Due to this, insurance premiums would likely increase, costing an average US family up to $700 annually.
The Vouch for Me program becomes available once a customer buys an insurance policy on Branch. By downloading the Branch app, users can sync their contacts and find out which of their friends or relatives are Branch customers. The program trial is being held in Ohio and users could get up to 5% insurance discount provided that they and the person vouching for them would remain customers of Branch.
Moreover, the company plans to roll out the program nationwide in the next few years; they expect that various states would have different approaches when implementing Vouch for Me.
Vouch for Me was included in the series of innovative programs by Branch. Back in October 2019, the insurtech rolled out SafetyNest for uninsured or underinsured people, helping them deal with financial loss due to certain incidents. In early 2020, the company plans on launching My Community Discount — a program that allows existing customers to refer friends to Branch and get monthly savings and Amazon Gift Cards in return.