Benjamin Kimo Twichell
@benkimotwichell · Digital Nomad 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?
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gil sadis
@gilsadis
@benkimotwichell I think this can help - . lmk ;)
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Benjamin Kimo Twichell
@benkimotwichell · Digital Nomad 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 ;)
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gil sadis
@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.
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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 :/
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Jared Krause
@thejfkshow · Sr. Art Director @ VML
@gilsadis @benkimotwichell Yeah, in no way does this make sense to call it P2P.
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Jonathan Hursh
@jonathanhursh · Founder @ Utopia
@gilsadis Agree. I think you should def change the P2P messaging. First, because it's misleading. Second, because I psychologically feel less secure as it's seems insurance shouldn't be left in this individualized realm.
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J. Alexander Curtis
@_jacurtis · Co-Founder, OhMyTix
@benkimotwichell Yes I was equally confused. To me when I saw "P2P Insurance" I thought maybe it was a marketplace where accredited investors were backing individuals. While the service is new and interesting, I don't see how it is P2P.
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Zaheer Merali
@zaheer_merali
@gilsadis @benkimotwichell @shai_wininger I like the transparency, the giveback model, etc. Really quite neat. But what you've described on your site and in your video doesn't appear to fit what P2P means.
Based on what I've read and watched today (please correct me where I'm wrong on this), Lemonade is a nicely packaged and marketed insurance arbitrage... you take a flat fee and reinsure the risk with large reinsurance co.s… cut out the brokers and agents and use tech to get the cost down so your 20% take covers your operating expenses. This arb model works as long as what you're charging after your flat fee (i.e., 80% of premiums charged) covers the reinsurance premiums (probably a reasonable assumption unless reinsurance gets repriced after some major losses - hurricanes?earthquakes?etc). Given the cost of brokers/agents and woeful tech/claims service in traditional insurers, I think you've got quite an interesting opportunity... but it doesn't seem to qualify as P2P.
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Stuart McCroden
@mccroden · (undefined)
@_jacurtis @benkimotwichell The insurance you own right now is peer2peer! All policyholders are insuring each other. Literally how insurance came to be, also called risk pooling. It's just a marketing spin.
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gil sadis
@gilsadis
@zaheer_merali thanks for your support. Not sure what the qualification process for being P2P is. A lot of people think different things about P2P and that's ok. What we mean by P2P is that we use each group's premiums to pay their claims, with leftover money going back to the group's common cause. To us P2P is a shorthand for: 'it's not our money'!
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Zaheer Merali
@zaheer_merali
@gilsadis Thanks for clarifying. No qualification process needed 😉
I guess it's still not clear to me how your peer group model is different to that of a traditional insurer in order to significantly reduce claims and claims costs and/or dramatically lower customer acquisition and retention costs. When I saw your P2P marketing tag line I think I was expecting something a little different, that's all.
Best of luck with the journey ahead. It's great to see people tackling really interesting problems.
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Shai Wininger
@shai_wininger · Founder @ Lemonade.com & Fiverr
@benkimotwichell You're right to think of it that way - and in fact, it's how we started this, and how Lemonade works on the most fundamental level. People who care about the same causes you care about make up the pool of money (their premiums) from which we will calculate the return to that cause, but what we've discovered along the way is that you have to have a platform to run the show. There are many reasons why, but the main ones are that Insurance is a highly regulated business and letting people insure each other without management is against the law. Another reason is, that not being able to get paid for claims could be a life-changing event for some people. This is why it's not recommended (nor is it safe), to rely only on each other without the backing of a stable, well funded centralised platform that can handle all the regulatory requirements and cash reserves needed. @benkimotwichell @benkimotwichell @david_heimann @thejfkshow @jonathanhursh @_jacurtis @zaheer_merali
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Benjamin Kimo Twichell
@benkimotwichell · Digital Nomad Marketing Consultant
@shai_wininger Hey Shai, don't want to keep beating it in here, but while your points may be great company mission statements, none of them make it p2p. "People ... make up the pool of money (their premiums) from which we will calculate the return" = the exact same financial structure as a normal insurance agency. You guys have figured out a great trick to massively improve the quality and experience of insurance, but it's simply not p2p. In the end Lemonade is a standard insurance structure, which donates the non-claimed returns to a charity of the users choice. Peer to peer means literally that, from one individual to another. Lemonade is an institution. Benevolent missions and structure do not change this. Saying it is p2p is misleading, even with a super stretched definition of p2p.
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