Israeli insurance technology company Lemonade announced, Wednesday, that it will begin rolling out auto insurance for American drivers across the country, starting in Illinois, as the company’s latest offering.
Lemonade has made waves in the traditional insurance industry since 2015 when it was founded in Tel Aviv by entrepreneur Shay Weininger, also co-founder of Fiverr, and Daniel Schreiber. The company uses technologies such as artificial intelligence and chat bots, as well as behavioral economics, to offer homeowners, renters, and life and pet insurance at affordable rates across the United States, all via a mobile app. Some of its offerings are also available in Germany, the Netherlands and France.
Lemonade claims that its streamlined claims process and rates — they offer renters insurance starting at $5 a month, and homeowners insurance starting at $25 a month — resonate strongly with younger consumers. It also runs a charitable component called the GiveBack Program, in which its users choose a non-profit organization they care about, and once a year Lemonade collects unclaimed and pooled money from policyholders who have chosen the same cause and donates it to the foundation. The program was featured in TIME magazine’s Top 100 Inventions of 2019.
Lemonade has raised nearly $500 million with notable investors such as SoftBank – its biggest backer – Aleph VC, OurCrowd, Google Ventures and Sequoia Capital, and had one of the most successful IPOs (initial public offerings) of 2020 on the New York Stock Exchange exchanging at a slightly lower rate. of 2 billion dollars.
The company’s newest service, Lemonade Car, is eyeing nearly $800 billion from the global auto insurance market. The company said it will leverage information technologies, an area that combines communications and informatics, to measure how much people are driving, and how safe they are to do so, to provide better prices for safe, low-mileage drivers. The app will also offer real-time accident detection, access to 24/7 roadside assistance, and the ability to dispatch emergency services.
Drivers of hybrid and electric vehicles (EVs) are set to receive special discounts on auto insurance, as will existing users of Lemonade’s other insurance offerings.
“The target audience is anyone who is disadvantaged by the current auto insurance industry,” Weininger told The Times of Israel by email. “By pricing based on how much and how safe you drive, Lemonade Car will be able to offer better rates – and fairer rates – rather than the way it is currently done (widespread dealerships such as credit scores, age and gender – all parameters that don’t,” t point out to the amount and extent of safe driving). Also, we’re looking at Lemonade’s existing customer base – homeowners, renters, pet owners, etc., who can now bundle their insurance with the car, get discounts, and get all their insurance needs in one place.”
Lemonade Car is “the company’s largest project ever,” Wininger wrote in a blog Wednesday announcing the new service.
“We have set up complete teams to handle tractors, repairs and body shop services, in addition to the 24/7 roadside assistance support and emergency services we now offer,” he said. “Providing a best-in-class car claims experience means being there for your customers 100 percent of the time, with surprisingly fast service and a lot of empathy.”
The company said Lemonade Car’s claims process will allow users to quickly file files, access emergency EV battery towing and recharge services, and track repairs.
There is an environmental component.
“We wanted to deliver a product that would not only reinvent how people buy auto insurance, manage their policy and file claims, but also do something good for the planet. Since we can’t stop using cars yet, we will help offset the CO2 emitted by our customers’ cars from By funding reforestation on an ongoing basis, Weininger said, “By using information technology in our app, we can estimate the amount of carbon dioxide emitted per trip, and plant the trees accordingly.”
Lemonade is headquartered in New York, with offices in Tel Aviv and Amsterdam. The company employs nearly 1,000 employees.
It announced annual revenue of $94 million in 2020 but the company has yet to turn a profit. Lemonade is due to announce its third-quarter 2021 financial results next week.