Lemonade: Tech Infused Insurance options
Lemonade (NYSE: LMND) is a technology-driven insurance company that offers homeowners, renters, pet, and life insurance on their easily accessible platform.
They emphasize on making this particular industry more accessible and affordable for many by bringing their customers low cost alternatives to traditionally high priced insurance models. They reduce the paperwork a customer would typically have to fill out, and instead let you file claims in minutes hassle free.
Competitive Advantages and Benefits
LMND has an abundance of advantages. One of their key advantages is their easy to use online platform which utilizes machine learning algorithms. They have created a compelling experience for not only discovering what kind of Insurance coverage you may need, but also creating an almost instant claim payment process.
Customers can rest assured knowing this company has their back, and that there’s no loopholes they can get themselves into that won’t be covered by their insurance package.
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Most times when customers are choosing their insurance plans, they will talk to Lemonade’s AI and occasionally their human team.
When a customer files a claim, they then tell the company what happened. Lemonade’s AI will run dozens of anti-fraud algorithm processes which will then either instantly approve the provided claim, or if not their AI will suggest talking to a human assistant where the issues can be sorted.
Because of these simple processes which they use they are able to handle 30% of claims instantly. This has led to customers rewarding LMND with a 4.9 star rating out of 5 on their app.
It’s safe to say that customers are ecstatic about this company.
Is Competition Coming?
Lemonade looks to be facing competition in the eyes of many from the entire insurance industry, this is due to the fact that Lemonade is simplifying a difficult process. They are disrupting the industry as a whole and showing how insurance should be handled if you truly want to provide the best for your customers.
So does Lemonade really have competition? Well not really and here’s why.
Many insurance companies are not technology driven and still use the old ways of doing business, let alone have an AI algorithm as their main assistant for all clients. Lemonade has a first-mover advantage in this new way of conducting business in the insurance industry due to being able to use data to further improve their business model. Data is not the priority of insurance companies, except it is for Lemonade. They can train their algorithm at a fast pace with their data to continuously provide the best results and experiences for their customers.
This is what makes them stand out against the others.
The Obstacles and Challenges the Company Faces.
One of the main obstacles standing in the way of Lemonade is actually Lemonade itself. In order for them to take on a bigger chunk of the insurance industry, they will need to prove themselves to a wider range of people across the world that they not only offer fast services, but reliable ones.
A complete judgement can’t be made quite yet for many as Lemonade hasn’t been around for as long as some traditional insurance companies, some even existing for a century or more. However if Lemonade can prove themselves and show their services are truly the best a customer could ever receive, then there is nothing stopping Lemonade from continuing to take more pieces of the insurance industry.
Overall Lemonade is a really phenomenal insurance company, they even let their customers choose a nonprofit and send the unclaimed money to the cause of their choice at the end of every year.
These characteristics have made Lemonade a Certified B-Corporation. If it’s possible for an insurance company, it shows that any company has room for social good.