Apparently technological disruption can make any industry trendy and cool – even insurance. Startup company Lemonade is being described by users as “instant,” “fun,” and contributing to “social good”. All this about a company that sells renters and homeowners insurance online.
Launched in 2016, Lemonade is based on an artificial-intelligence platform and describes itself as “designed for social impact.” Money not spent on claims doesn’t go to profits, but to charities selected by the policyholders. Having recently obtained $300 million in new funding, the company is now valued at over $2 billion and operates in 22 states, with plans to expand further in the U.S. and globally.
Here are a few insights on disruption and customer-experience from a Forbes interview with Lemonade co-founder and CEO Daniel Schreiber:
- Find an underserved market: “87% of Lemonade’s customers are first-time insurance buyers.”
- Align products/services to today’s consumers: “…make the entire experience instant, simple, and hassle-free.”
- Reduce complexity: “[Lemonade is] built on artificial intelligence (AI) and behavioral economics. Specifically, AI displaces brokers and paperwork, and behavioral economics displaces fraud and conflict, all of which results in reduced time, hassle and costs… AI then takes care of the underwriting and claims process.”
- Take an outsider’s viewpoint: “When you know too much about a certain subject, that can bind your imagination and cap your creativity. So, if you’re looking to evolve your own organization, don’t let any conventional wisdom tie you down.”
- Make what’s good even better: “Just because an industry has been around for long time and been considered ‘good enough,’ doesn’t mean it can’t be better. Don’t be afraid to challenge the status quo set by legacy companies.”
And which unexciting industry is next to be digitally disrupted – the legal sector? Actually yes, probably the legal sector…