Lemonade

Forget everything you know about insurance

#4 Product of the WeekSeptember 21, 2016
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Lemonade Insurance Company is a licensed insurance carrier, offering homeowners and renters insurance powered by artificial intelligence and behavioral economics. As a Certified B-Corp, where underwriting profits go to nonprofits, Lemonade is remaking insurance as a social good, rather than a necessary evil.

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Reviews

 
  • Michael TchongFounder, Ubercool Innovation
    Pros: 

    Beautiful UI

    Cons: 

    It should accept all homes, not just ones it "likes."

    Lemonade decided that our home in Las Vegas not insurable, yet it's a standard suburban home in Las Vegas, currently insured by Geico and insured by Allstate in the past.

    Michael Tchong has used this product for one day.

Discussion

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Shai WiningerMaker@shai_wininger · Founder @ Lemonade.com & Fiverr
Morning Hunters... I want to introduce you all to Lemonade, the world’s first full-stack insurance company that is powered by bots, stunning design and a good heart. We ditched agents and paperwork, and built an entire insurance company from the ground up to provide users with an experience that’s fit for the 21st century. We wanted to make insurance instant, smart, honest and delightful. But wait, that’s not all. We’ve discovered a way to hack how insurance works! It turns out that on average, about half of the money we all pay insurance companies actually goes to cover for claims. The rest is taken for their expenses and revenues. Now, this is a big deal. It means that insurance companies earn more when we’re paid less (or slower), and explains why so many people have terrible experiences around claims. By design, insurance companies hate to pay because it hurts their bottom line. Lemonade works differently. We take a flat fee upfront, pay for claims and expenses, and give back everything that's left to causes our users pick. Doing this steers us away from that conflict, and when claims come, we’re happy to pay them fast because it doesn’t affect our revenues. This is why we’ve taken on the challenge of building a full stack insurance company (which is fucking hard btw). Starting fresh was the only real way to break the vicious cycle of people not trusting insurance companies and companies not trusting people. Give us a try! I’d love to hear what you think. Shai Wininger Chief Lemonade Maker (The Lemonade App is available for iOS and Android)
Haim Pekel@haimpekel · CEO & Co-founder @ Press on It
@shai_wininger In which countries do you operate? Also, what happens to the accounts if your company shuts down (kudos btw, it's not an easy task and this is a field ripe for innovation :)
Shai WiningerMaker@shai_wininger · Founder @ Lemonade.com & Fiverr
@haimpekel we've launched NY and will gradually be rolling out additional states soon. As to your second question - insurance companies have to go through strict regulatory compliance process to make sure they stay solvent. In any case, we're financially rated A-Exceptional and are backed by the biggest reinsurers in the world such as Lloyd's of London, Berkshire Hathaway National Indemnity and XL.
Clement Ho@clemmakesapps1
@shai_wininger This is wonderful. Looking forward to this making it's way to Texas!
Jonathan Hursh@jonathanhursh · Founder @ Utopia
@shai_wininger This is so refreshing to see. And finally, a gamechanger on Product Hunt. This should encourage more developer/founders here to turn their considerable talents into much bigger things than I generally see here.
Joshua Dance@joshdance · Engineer, Product Manager, athlete
@shai_wininger Why pay out the extra to causes? Why not keep for a black swan event?
Benjamin Kimo Twichell@benkimotwichell · Growth Marketing Consultant
Maybe I'm missing something obvious, but how is this p2p? Are you considering it p2p because it's not a 'traditional' insurance agency?
gil sadisMaker@gilsadis
@benkimotwichell I think this can help -
. lmk ;)
Benjamin Kimo Twichell@benkimotwichell · Growth Marketing Consultant
@gilsadis I love the model (and really wish you had travel's insurance!!) but I see p2p insurance as a literal other person insuring me. Perhaps I'm just being too limited in my view of what p2p is ;)
gil sadisMaker@gilsadis
@benkimotwichell Thanks for your support. I suggest you'll watch the video above and I you'll see how we vision p2p. The tl;dr; of this video is that Lemonade is behind every policy. We're a fully licensed, A-rated insurance carrier and ready to go.
David Heimann@david_heimann · Co-Founder, Purple
@gilsadis @benkimotwichell I'd agree that I don't really think this constitutes P2P distribution. I like the idea itself but marketing it as P2P insurance feels a little disingenuous :/
Jared Krause@thejfkshow · Sr. Art Director @ VML
@gilsadis @benkimotwichell Yeah, in no way does this make sense to call it P2P.
Bram Kanstein (@bramk)Hunter@bramk · @nocodemvp | @startupstash (Acquired)
Big launch of an awesome new #insurtech company today - they're on a mission to change the insurance world - @shai_wininger & co can tell you more!
Yoav Aziz@yoav_aziz · Head of Growth @ Yotpo
Amazing design & on-boarding. Good luck!
gil sadisMaker@gilsadis
@yoav_aziz Thanks! Glad you liked it :)
Matt@fightn4food · creative, Every Wednesday Night
Why not return the money to your customers?
Daniel SchreiberMaker@daschreiber · CEO & Co-founder, Lemonade
@fightn4food We're in total agreement 'spiritually'. However the law in NY doesn't allow that right now - but we're working on updating the law! At the same time we're hoping that even once the law changes customers will still choose to give the money to a cause. It's nice to have insurance were all parties agree that unclaimed money goes to a good cause. See Professor Ariely's explanation here https://youtu.be/6U08uhV8c6Y
Justin Mares@jwmares · Co-author, Traction Book
@daschreiber @fightn4food what happens if your claims are larger than your capital pool - do you charge users more? Claw back money from charities? How does this work? As far as I know most insurance companies have huge pools of capital for this reason, which is why they don't aggressively lower rates all the time.
Alex Barnes@alexbarneshere · Strategy & BD, Knotel
@jwmares @daschreiber that's what reinsurers are for. As @daschreiber mentioned, they are reinsured by A rated carriers (insurers of the insurers). I also agree that this is not p2p in the sense that most people would imagine it to be. I think direct to consumer (no brokers) is more fitting.
Brian LeePro@kay0stheory · code monkey @ theymadethat
@daschreiber why not make it a co-op instead so that there's a larger pool?
Siddhant Patel@siddhant_patel
@fightn4food This is how one of the makers justifies it somewhere else in the comments - "In terms of why we're giving it to charity, part of the thesis is that people feel entitled to embellish claims (25% say so to pollsters) and that this creates artificially high claims ratios. Knowing over-claiming is impacting a cause you believe in, rather than an insurance company you don't, creates a self-fulfilling dynamic where people claim more responsibly and therefore charities get more" This makes absolute sense.