New York-based Lemonade Insurance Company, founded by Israeli entrepreneurs Shai Wininger and Daniel Schreiber who seek to revolutionize the way homes are insured, is expanding its services from the US to Europe.
“We’re thrilled to announce that Lemonade is coming to Europe — our first major market outside of the United States,” Schreiber wrote in a blog posted on the company’s website.
“Europe, the birthplace of modern insurance, is one of the largest insurance markets globally, and is home to the two largest insurers worldwide – AXA and Allianz,” he wrote. Both AXA and Allianz are investors in the startup.
“Great digital brands transcend borders,” wrote Schreiber. “Whether in Chicago, Paris, or Singapore, today’s consumers listen to music on Spotify, ride with Uber, and stay at Airbnb. Consumers are increasingly cosmopolitan, socially aware, and tech-native — everything Lemonade was built to be. That’s why going global feels natural for us.”
Schreiber did not say where and when in Europe the company would start providing its services.
Lemonade, which began its activities with homeowner and renters’ insurance, is a licensed insurer in some US states, including California, Illinois, New Jersey, New York and Texas, allowing users to insure their homes by doing away with agents and replacing them with artificial intelligence and bots, applications that perform an automated task.
Customers answer a set of simple questions through a chat with the company’s bot, “Maya,” and, in seconds, can get their home insured. It takes 90 seconds to get insured, the company’s website says, and three minutes to get paid, if and when a claim is made.
Unlike traditional insurers, Lemonade takes a flat fee — one that would normally go to the insurance brokers — and sets aside the remaining funds for claims. In a good year, when there’s money left unclaimed, the company does not pocket the money but donates it to causes their customers choose.