Lemonade is an insurance firm. Period. Regardless of how an insurance firm uses technology – or even if it entirely populated by androids and algorithms, it remains an insurance firm and only an insurance firm.
It will be interesting to see how this company will handle a catastrophic event. If all they rely on is Artificial Intelligence I would be curious to see how it handles claims from a hurricane.
And Amazon is just a retail firm? I’m not exactly sure what you are implying with the “only an insurance firm” comment, but the investment money follows where the demand will be, and in this case it will be on a firm that has the ability to efficiently, effectively and consistently deliver an insurance buying and servicing experience without the direct requirement to interact with an agent. Doesn’t that make you pause and wonder how you will set yourself apart? I find it amusing that agents directly go to a response that says it won’t work, when they should be asking, how do I bring value to the model of the future?
There will always be a huge demand for cheap insurance. Even cheap crummy insurance. Helping the consumer avoid the later is how we currently set ourselves apart. I guess that won’t be enough in the future for some.
Great points……. It wasn’t long ago that big box stores like Best Buy were being dismissive of Amazon. No longer. They are struggling to remain in business, their entire model has changed in attempt to remain relevant. IF insurance is merely purchases as a commodity (as most Amazon items are) there is no reason to NOT do business with the cheapest and easiest. The product is all the same. This is no threat to the professional whom understands insurance is just one segment of prudent risk management and risk management is their real business.
I did a quick quote online for a renter without expensive jewelry in NYC. $5/mo with a $250 deductible, and $10k property, $100k legal, $3k loss of use, $1k medical to others limits. Increasing to $20k property and $11k loss of use is about $8/mo. I world say that’s decent for renters insurance.
Dovetailing with Agent2’s comment, Lemonade simply caters to those who buy price, not coverage. And those low-end clients willget what they pay for: No one to talk to or answer questions about all the moving parts that comprise P&C packages. And don’t forget about the terms, conditions and exclusions of coverage that price-first buyers conveniently ignore until their claim is denied or severely limited. If not for the pain Lemonade will mean to claimants, it will be amusing to see the legal onslaught awaiting Lemonade over denied claims.
Lemonade is an insurance firm. Period. Regardless of how an insurance firm uses technology – or even if it entirely populated by androids and algorithms, it remains an insurance firm and only an insurance firm.
And in this case, a highly leveraged insurance firm.
Wait for the shellacking in BI & PD claims before popping the champagne.
It will be interesting to see how this company will handle a catastrophic event. If all they rely on is Artificial Intelligence I would be curious to see how it handles claims from a hurricane.
And Amazon is just a retail firm? I’m not exactly sure what you are implying with the “only an insurance firm” comment, but the investment money follows where the demand will be, and in this case it will be on a firm that has the ability to efficiently, effectively and consistently deliver an insurance buying and servicing experience without the direct requirement to interact with an agent. Doesn’t that make you pause and wonder how you will set yourself apart? I find it amusing that agents directly go to a response that says it won’t work, when they should be asking, how do I bring value to the model of the future?
There will always be a huge demand for cheap insurance. Even cheap crummy insurance. Helping the consumer avoid the later is how we currently set ourselves apart. I guess that won’t be enough in the future for some.
Great points……. It wasn’t long ago that big box stores like Best Buy were being dismissive of Amazon. No longer. They are struggling to remain in business, their entire model has changed in attempt to remain relevant. IF insurance is merely purchases as a commodity (as most Amazon items are) there is no reason to NOT do business with the cheapest and easiest. The product is all the same. This is no threat to the professional whom understands insurance is just one segment of prudent risk management and risk management is their real business.
The catastrophe will be as “delightful” as the rest of the Lemonade experience.
Another glass? Thanks, but I’ve had enough for today
Pretty good odds that the consumer will have a sour taste in their mouth from Lemonade, especially after claims have to be paid.
What do you think Lemonade does? I don’t think you understand the articles on this, on the off chance you even read them.
142 policies and 14K in premium means 100 per policy
What are they selling as they state home and renters – must be almost ZERO COVERAGE
Based on what I think I know about this thing, which isn’t much, the numbers quoted are for one month of coverage.
I did a quick quote online for a renter without expensive jewelry in NYC. $5/mo with a $250 deductible, and $10k property, $100k legal, $3k loss of use, $1k medical to others limits. Increasing to $20k property and $11k loss of use is about $8/mo. I world say that’s decent for renters insurance.
Dovetailing with Agent2’s comment, Lemonade simply caters to those who buy price, not coverage. And those low-end clients willget what they pay for: No one to talk to or answer questions about all the moving parts that comprise P&C packages. And don’t forget about the terms, conditions and exclusions of coverage that price-first buyers conveniently ignore until their claim is denied or severely limited. If not for the pain Lemonade will mean to claimants, it will be amusing to see the legal onslaught awaiting Lemonade over denied claims.