Lemonade continues to
disrupt the insurance sector
By Patricia L. Harman, PropertyCasualty360.com
Lemonade Insurance Company is changing the way insurers pay claims and is setting a new speed
record at the same time.
The company, which promises policyholders zero paperwork and almost instantaneous service due to its use of artificial
intelligence, announced that it “set a world
record for the speed and ease of paying a
claim” when it settled a claim in three sec-onds with no paperwork involved.
Policyholder Brandon Pharm submitted a claim for a Canada Goose Langford
Parka, which was stolen on very cold Saturday night. He had purchased the coat at
Saks Fifth Avenue for $979.
By using his Lemonade app and speaking into the camera, he described what
had transpired and then hit “submit” for
Lemonade was able to review the claim,
cross reference it with Brandon’s policy,
run it through the company’s claims bot,
A.I. Jim and 18 anti-fraud algorithms, approve the claim and send instructions for
wiring the money to his account to the
bank in three seconds.
“Since no international standards exist
for the payment of insurance claims, the
Guinness Book of World Records was un-
able to enter Lemonade as the World Re-
cord Holder,” explained Daniel Schreiber,
CEO and co-founder of Lemonade. “Yet
from all we can gather, in the 3,000-year
history of insurance, nothing like this has
ever happened in three seconds. So we’re
claiming the title.”
Pharm said he was “shocked by how
easy the process has been with Lemonade.
I signed up for Lemonade because it was
no frills, the most affordable option (he
pays $5 per month for coverage) and took
no more than two minutes on my couch.”
Lemonade doesn’t settle all claims in-
stantly and some are actually forwarded
to a human for further review, but the
company says it counts time in millisec-
onds rather than days or weeks.
Policyholders purchase insurance
coverage through an app. Lemonade
charges a flat fee and returns any unused
money to a variety of causes selected by
policyholders in a particular “Giveback”
pool. Money is paid on June 20th each
year unless the pool is depleted.
Specializing in Transportation Claims