Nine Israeli inventions were recently listed in the “Top 100 Best Inventions” of the Time Magazine including lemonade.
Founded by serial entrepreneurs Daniel Schreiber and Shai Wininger, Lemonade takes on the biggest challenge you can imagine: they want to make the world of insurance fun, engaging and even – you’ll laugh – sexy.
Daniel Schreiber. “In 2015 Shai Wininger (co-founder of Lemonade) and I were new to the business. We had spent our entire career in technology and were looking to take the next step in shaking up an industry. When we came across insurance, almost by chance, we had a revelation.
This sector has a penetration rate of almost 100% of households. And yet, we found it unchanged. The companies that ruled it more than a hundred years ago – Axa is almost 200 years old! – are still the same today. We discovered that insurance was suffering from a lack of trust from its customers. Discovering an unchanged and unloved sector is the dream of any entrepreneur! »
Lemonade uses state-of-the-art technology and truly world-class execution to provide its customers with the ability to use a superbly well-designed application and claim their insurance premium in just seconds.
Lemonade has raised funds from the world’s largest investors and is moving extremely fast. The app is launched weekly in new cities and is beginning to overshadow the world’s largest insurance companies, which are quickly being left behind.
Lemonade is backed by investors including Aleph, General Catalyst, GV (formerly Google Ventures), Sequoia Capital, Thrive Capital, Axa XL, and Japanese technology investor SoftBank. Since December 2017, Lemonade has raised a total of $120 million. Lemonade is listed on the New York Stock Exchange under the symbol LMND. Lemonade announced in 2020 that it had surpassed the milestone of one million active customers.
MOST. Lemonade issues its own insurance policies and is reinsured with Lloyd’s of London and AXA.
Lemonade’s business model differs from that of traditional insurance companies. Lemonade charges a fixed commission of 25% on the insurance premium of its policyholders, the remaining 75% being reserved for the payment of claims and the purchase of reinsurance. Unused contribution funds are redistributed to associations chosen by its policyholders, during the annual “Giveback”.
Lemonade uses chatbots to issue insurance policies and manage claims for claims. In 2016, a customer filed a claim for a stolen coat; after answering a few questions on the app and sharing a report from his iPhone, Lemonade’s chatbot set a world record by reviewing, approving and paying the claim in three seconds.
When subscribing to Lemonade, policyholders select a charity that will receive payments on an annual basis from the unclaimed premiums (also known as underwriting profits) of their respective cohort. (Source: ElAl)