InsurePal, led by former Direct Line chief operating officer and Lloyd’s veteran, apparently completed the Crowdsale campaign in less than 2 minutes

InsurePal, a peer-to-peer insurer, has raised £15m in an Initial Coin Offering (ICO) to fund its UK motor launch.

The insurer is offering lower premiums for those able to gain ‘social proof’ guarantees from friends and family.

It uses a form of ‘peer pressure, or ‘social proof endorsement’ using the Ethereum blockchain platform as a base for transactions.

This is aimed at encouraging and sustaining better behaviours – such as safer driving - among policyholders.

By accepting only risks that an endorser guarantees with a financial commitment, InsurePal is able to offer a lower premium for the insured. Endorsers are rewarded with tokens which may be used for their own discounts, sold or kept as an investment.

The crowdsale for InsurePal tokens online was apparently sold out in 1 minute 20 seconds.

Key advisers to the company include former Direct Line chief operating officer, Damian Arnold and Lloyd’s of London veteran, Tom Manson.

Co-founder and chief executive, Matt Peterman says:

“Insurance is a $7.3 trillion 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 InsurePal, the social proof that benefits these responsible clients with big discounts also carries embedded value in its underlying IPL token currency.”

InsurePal’s motor pilot is expected to be followed by schemes for property, casualty, life and health.