“If you tried to create a system to bring out the worst in humans, it would look a lot like the insurance of today,” says Professor Dan Ariely, Chief Behavioral Officer of Lemonade Insurance.
The Mission of this B Corp, founded in Israel in 2015, is to ‘transform insurance from a necessary evil into a social good’ – by organising it around the customer.
Here’s how it works:
You get a quote via an AI bot, named Maya, on Lemonade’s app – supposedly takes 90 seconds.
You pay a monthly subscription (that’s the only normal bit).
Lemonade takes a flat fee – currently 20%.
Claims take 3 minutes, Lemonade says. Choose the ‘Zero Everything option’ and claim on the smallest things: ‘zero deductible, zero rate hikes, zero worries’.
Lemonade asks you to select a nonprofit you care about. Once per year, they tally up the unclaimed money left from everyone who chose that same cause, and pay the unclaimed money to that nonprofit accordingly. 10% of first year revenue went to nonprofits.
Regrettably it’s currently only available in some parts of the USA, but Lemonade recently secured $120 million in funding in a Series C round led by SoftBank – so we suspect this is going to go big.
Read more: Lemonade website
