Lemonade is a peer-to-peer insurance provider that donates unclaimed money to charities chosen by its members.
We have covered a number of peer-to-peer innovations here at Springwise. Most recently this drone rental service that operates peer-to-peer lending, and this renewables service that allows those producing green energy to sell it on to others using Blockchain technology. Now Lemonade is a Public Benefit Corporation and certified B-Corp offering peer-to-peer insurance.
Launched in September, Lemonade Insurance Company is a property and casualty insurance company providing policies for both homeowners and renters. In essence, the startup has some interesting features that differentiate it from a traditional insurance model. Firstly, makes use of technology, operating an app that finds customers a suitable policy and offers virtual assistance. Secondly, social impact is a part of the business model and all unclaimed money is donated to charities chosen by its members. And finally, the startup takes a flat fee of 20%, using the rest of the customers’ policy money, to pay for claims meaning, unlike traditional insurance companies, there’s no incentive not to pay out.
The service is currently operating in New York only but the company have plans to roll it out to other states.