Luke Robbins, broker manager, RSA comments, "If successful, Lemonade’s model has the potential to change the way we do insurance. Lemonade and other similar insuretech companies have the potential to disrupt the insurance industry."
- Lemonade takes 20% of the premium as a fee
- 40% goes to reinsurance
- 40% -if no claims- goes to chosen charities
- 0% goes to customer
Pete Emery, director of retail brands at RSA says, “As a new insurer, the jury’s out on how successful they will be. There seem to be as many articulate reasons stating why they can’t succeed as those that think they can. Whatever becomes of Lemonade as we currently know them, we would be foolish not to learn from some remarkable challenges they have brought to market.
- Story telling: Their back story and ongoing narrative has been exceptional. They have built trust and excitement in a dull and untrusting environment.
- Ease to buy: They’ve taken a grudge purchase and almost made it fun. They’ve certainly made it more relevant and appealing to the younger generation.
- Artificial Intelligence: a peerless use of AI to drive fast decisions utilising all the cynical processes of fraud checks, value checks, underwriting checks but behind the curtain and lightning fast. We need to remove layers of bureaucracy and manual process and embed AI."
Ian Youngman, leading insurance analyst and author of the market research report "Peer to peer insurance" comments, "Lemonade has made many promises but is only offering homeowners and home renters insurance. I see an insurer buying Lemonade for the technology and dumping the charity element. For all the PR from the company, nothing disguises that the founders and big investors can only make a fortune by selling to a global insurer- not from running an insurance company."
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.
Report Cost For iPMI Magazine Readers
Peer2peer Insurance is 250 pages. The RRP is £1699 and is been sold elsewhere at this price. Currently iPMI Magazine subscribers only pay £999.
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