Country: USAlemonade2
Year: 2016


  • Lemonade has just launched a mobile first insurance for homeowners and renters in New York state, one of the largest US markets for Property & Casualty insurance
  • Lemonade mixes behavioural economics, AI and video claims management whilst reducing bureaucracy and lowering costs for users
  • Its 100% online mobile signup guides users through each step with the help of a virtual chatbot enabling a tailor-made policy and adjustable coverage (legal and liability costs, property and valuables, loss of use, medical care for others)
  • The company takes a flat fee of 20% out of users’ insurance premiums (its only fee), then lets the user choose a local philanthropic initiative
  • Users’ premiums are pooled by philanthropic initiative, which serves as a fund for any claims. At the end of the year, any leftover money (the underwriting profit) is then sent to the charity
  • Lemonade esteems that users are less likely to make fraudulent claims if their money is going to a good cause of their choice
  • Under New York state law, Lemonade can not return remaining money to users, instead choosing to donate to local causes

Consumer Benefits

  • Zero paperwork: users can readily access documents online and avoid posting documents to their insurer. Account creation takes around 2-3 minutes
  • Transparent: users know what’s included in their policy and choose where their unclaimed premiums go

How To Use

  • New York-based users can download the mobile app (available on iOS and Android) or signup on Lemonade’s website. Lemonade plans to roll out across the rest of the US soon
  • Users enter personal information (name, address, email address) before selecting if they rent or own their home, share with roommates or have any types of burglar or fire alarms
  • Lemonade can also cancel any previous insurance the user has with another provider and provide a refund. A monthly rate is then calculated which is payable by credit card
  • Customer claims are made through the application using a video camera and a chatbot


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