Insurance startup Lemonade expands into Europe
Lemonade launched back in 2015 with a brand new take on insurance. Unlike other digital insurance brokers, Lemonade is a licensed insurance provider in its own right. But rather than calling around to get a quote from the big guys, Lemonade users interact with a chatbot via the app to get signed up for insurance. It takes less than five minutes to get covered.
Moreover, Lemonade believes that the business model of insurance is counterintuitive to good service. So Lemonade introduced a charitable component to their business. Lemonade takes its profit directly out of each monthly payment to Lemonade, and holds the rest for claims. At the end of the year, once claims are paid out (if there were any), the rest of the money goes to a charity of the user’s choice.
Lemonade CEO and founder Daniel Schreiber explained that insurance providers keep all the money that doesn’t go toward claims