Take note; Lemonade is out to capture the insurance needs of the millennial. Launched in New York City, 2015, Lemonade is more than a tech-savvy app; they're a fully licensed carrier that underwrites its policies.
What makes them special? Lemonade executes a peer-to-peer (P2P) like-minded marketing approach backed by seasoned leadership and noted investors led by Softbank such as; Allianz, General Catalyst, GV, OurCrowd, and Thrive Capital.
The barely over three-year-old company has raised $300 million in Series D funding at a valuation of more than $2 billion.
Instant Everything. Killer Prices. Big Heart.
Aimed at millennials the company has a 90-second app sign-up and touts a headline-grabbing' 3-minutes to get paid process, using sophisticated AI efficiency instead of brokers. Efficiency that's coupled with transparent pricing; they currently issue renters and home insurance for urban dwellers and others.
How Lemonade Works
Lemonade reverses the traditional insurance company, business model. Based on the trust and complete transparency, they pool premiums from rapidly expanding P2P networks or people that trust one another.
About 87% of their customers are new to the insurance category, first-time buyers, and without insurance company loyalties.
They treat premiums (monthly subscriptions) as the subscriber's money. Meaning, everything is transparent, they take a 20 % flat fee of paid monthly subscriptions, pay claims fast, and give what's left to a charitable giveback, causes selected by the subscriber through the app.
Built On Mutual Trust + Community Impact
By minimizing fraud estimated to be about 40% of insurance claims costing the average family $1300 a year in additional premiums, the company can keep subscription costs lower and pay claims fast. Conventional insurance companies are incentivized not to pay full claims. Members rely on each other not to inflate claims that would deplete money earmarked for social causes.
Simplicity, honesty, and social good. The perfect trifecta.
Now available in 24 states and Germany.