US peer-to-peer insurer Lemonade has opened for business in California to offer homeowners and home renters insurance. This is months after launches in New York and Illinois. Renters policies start at $5 per month and homeowners at $25 per month.
Customers can now buy a new policy or painlessly switch from an existing one in no time and with no paperwork, either online or through the Lemonade app.
The insurer is focused on renters and homeowners insurance with very small premiums.
Lemonade is applying for approval in only 46 additional states because Mississippi, Washington and Wyoming have statutory waiting times. It will file in each of those states once the waiting time requirements have been met.
Lemonade takes a flat fee for insurance and gives back any unclaimed money to causes policyholders care about. The charities vary by state.
Ian Youngman, author of "Peer2Peer Insurance" comments: " It has huge national ambitions and the jury is out as to whether it will provide sweet refreshment for investors or a sour taste. The company is vague on figures and takes 20% of the premium, which on these individual policies is tiny. The owners and backers must be hoping that in a few years a big insurer will buy them out for the technology; well before any long-term liability claims start hitting."
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Peer To Peer Insurance the brand new market research report from insurance analyst Ian Youngman, is out now. The Peer To Peer Insurance report looks at the background, potential, problems, and regulation, as well as profiles of every known peer-to-peer platform.
Report author Ian Youngman comments, “Peer to peer insurance is very new and often misunderstood: with even many platform founders confused if they are an insurer, broker, techie idea - and whether they are legal or illegal. Regulators are taking notice - with some being very supportive and others preparing to close platforms they consider to be illegal. Peer to peer will stimulate change and make insurance quicker, simpler and more transparent. As in direct insurance decades ago, one or two of the newcomers will become national or international successes; while others will be taken over by existing insurers, and those insurers who ignore the lessons will die."
About The Author
Ian Youngman is an insurance writer and researcher who has published many market reports.
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