Insurtech startup Branch launches innovative new program to lower the cost of insurance
Vouch for Me leverages communal trust to help customers save
Dec 17, 2019, 12:09 ET
COLUMBUS, Ohio, Dec. 17, 2019 /PRNewswire/ -- Branch Insurance, the Ohio-headquartered insurance startup that pioneered bundling home and auto insurance online in seconds, has now launched a new program to help customers continue to lower the cost of their insurance. Today, Vouch for Me begins its rollout in Ohio allowing customers of Branch to request a "vouch" from other Branch customers in exchange for up to 5% off their insurance.
"We founded Branch out of the deeply held belief that by leveraging the power of community, we could make insurance better and more affordable for everyone. The concept behind Vouch for Me is simple: if a Branch customer is willing to vouch that you're a trusted member of the community, we'll reduce your insurance price by 1% out of recognition that you're less likely to commit fraud," said CEO and CoFounder of Branch, Steve Lekas.
In fact, according to the FBI, "the total cost of insurance fraud (non-health insurance) is estimated to be more than $40 billion per year. That means insurance fraud costs the average U.S. family between $400 and $700 per year in the form of increased premiums."
Branch sees the Vouch for Me program as a way to help reduce the risk of insurance fraud. By equipping users with the technology needed to foster a more trusted community of users, Branch expects to reduce the incidence of fraud and pass savings along to customers.
Vouch for Me becomes available to customers as soon as they buy a policy on Branch (provided the program is available in their state). Once a user downloads the Branch app, they'll be able to sync their contacts and identify any friends who are Branch customers. From there, all the user needs to do is send a "vouch request" to their contact (using the app). The contact will then get a short email from Branch asking the user to vouch for their friend with a simple click. Once vouched for, the user will see a 1% discount off their insurance.
As the program rolls out nationwide over the coming years, Branch expects slight differences in how the program will be administered state-to-state. In Ohio, where the program is being piloted, users will be able to save up to 5% on their insurance for as long as they and the person vouching for them remain Branch customers.
The Vouch for Me program is the latest in a series of innovative programs designed to leverage the power of community to improve insurance and make it more affordable. SafetyNest rolled out in October, 2019 to provide help to uninsured (or underinsured) people who have experienced an incident that put their financial condition in jeopardy. Branch further expects to rollout the My Community Discount in early 2020, to help customers invite their friends to Branch in exchange for Amazon Gift Cards and monthly savings.
To see how much you can save by bundling your home and auto insurance, simply go to ourbranch.com and enter your name and address.
About Branch
Branch was founded in 2017 by Steve Lekas, formerly of Allstate and Esurance, and Joe Emison, founder of BuildFax. Branch believes deeply that by harnessing the power of community, it can make insurance better and more affordable for all. Branch insurance is underwritten by General Security National Insurance Company (GSNIC) an AM Best A+ Financial Rated insurance company. Branch is headquartered in Columbus, Ohio.
Contact: Kimberly Klenk, [email protected]
SOURCE Branch Insurance
