With a reputation as a sector with one of the lowest customer satisfaction rates, the insurance industry, aided by digitalisation, is staging its own revolution. The proof is in LEMONADE, the start-up which, according to its CEO and co-founder, Daniel Schreiber, aims to be the insurance company for the 21st century.
#oneday tells you more.
2015, 300 million dollars, 500 000 policies…
LEMONADE is, above all, a story in numbers. And some pretty impressive numbers too.
See for yourselves!
The start-up was launched in New York in 2015. It is already present in 25 American states and in 2019 has already raised 300 million dollars. This brings its value to 2 billion dollars. Specialised in home insurance, it boasts 500,000 clients. But its business model is where it makes all the difference.
The promise: 90 seconds to take out a policy.
With its 100% digital and mobile model, LEMONADE simplifies the client journey and allows you to sign up for home insurance in 90 seconds….and have claims paid in just 3 minutes.
How is it possible?
It’s due to a solid client-oriented culture, but also and above all, due to chatbots and machine learning. These help to cut out administrative steps and to collect 100 times more data than a traditional insurance company. Result: LEMONADE is shifting from a probability based model (based on analysis of the past) to a predictive model which allows it to be far more reactive.
Great client experience is ensured.
Clients, particularly millennials, are increasingly demanding. LEMONADE has gained control of the field by being transparent and adopting clear, direct language in its deals and services. Better still, by cutting time with insurance agents, long procedures and the cumbersome administrative burden, LEMONADE is gradually removing sticking points and is moving towards a relationship which is simple, serene and rational.
Finally, compensation for claims is calculated in real time by AI which appears more neutral and builds confidence. With LEMONADE, the client does not gain a new intermediary, but more a new tool which simplifies his or her life and brings a sense of balance in the relationship with their insurance company.
Insurance tech is booming.
The new generation insurance sector has seen a boom in the past few years. As well as LEMONADE, there is TROV (in the UK, USA and Australia) which lets you insure everyday objects/items in on/off mode on your mobile. HUDDLE (Australia) assigns a proportion of unused premiums to charities or to ocean clean-up projects. There’s also CUYVA (UK), in the car insurance sector, which lets you sign up ultra-quickly just by sending a photo of your driving licence and the car together with a selfie. Today there are over 1,500 insurance techs in the world, supported by numerous investors, of which many are traditional players in the insurance world. These investors see a source of inspiration as well as strong competitors in the future.
Crédits photos : Lemonade