Daniel Schreiber, CEO at Insurtech Lemonade (NYSE:LMND), reveals that it’s now their 5th year in a row of givebacks. It’s actually grown 4000% across those years, Daniel notes, while adding that it has been growing quite steeply this year compared to 2020’s 100%+ growth. He also mentioned that he thinks these moves are welcomed by their investor community.
Last week, our Lemonade community gave back 4000% more than it did in our first Giveback, four years ago. Lemonade CEO @daschreiber spoke with @CNBCClosingBell about how Giveback can help solve the biggest business problem in insurance – distrust. pic.twitter.com/zPP4Bs3YgW
— Lemonade (@Lemonade_Inc) July 23, 2021
Daniel pointed out that he doesn’t think there’s anything wrong about giving away money from your investors. He clarified that they are not actually raising money from investors and then giving those funds away.
He acknowledged that if they were doing that, it would not have been “particularly wonderful.” Daniel further claims that in Lemonade‘s case, it is different. He noted that it’s not simply the case of them just being generous with investors’ money. Daniel explained that it’s really “building value for investors.”
“One of the premises upon which Lemonade is built is that, you can change the business model of insurance and actually give back to non-profits to solve a business problem that is indeed near and dear to the hearts of our investors … which is that it’s an industry that is plagued by [mistrust] so … billions are lost to fraud, insurance fraud which is not committed by some criminal gangs overseas.”
He further noted:
“It’s people like me and you who for some reason when it comes to insurance feel entitled to embellish our claims and …as we founded Lemonade we really want to contend with that issue…how do you build a trusting and trustworthy brand in insurance that would elicit a different kind of behavior from customers to the benefit of the consumer, the company, and its shareholders … and our giveback is a central plank in that strategy.”
As reported in April 2021, Lemonade, the insurance firm that’s powered by AI and behavioral economics, announced on Tuesday (April 20, 2021) that it’s “readying ‘Lemonade Car’ for launch within the year.”
As mentioned in a release shared with CI in April, early registration is “now open at www.lemonade.com/car.”
The announcement further noted:
“Today’s news marks the company’s third expansion into a major new insurance category in less than 12 months. The company started with homeowners products, adding pet insurance in the second half of 2020, and term life insurance in the first half of 2021. The launch of Lemonade Car will allow both existing and new customers to bundle their home, pet, and life policies with their car insurance.”
The US car insurance sector is valued at approximatley $300 billion—”70 times the size of both the renters and the pet insurance markets,” the release revealed while adding that “a large majority of Lemonade’s existing customers are car owners, and they already spend about $1 billion on car insurance each year.”