Lemonade has made some big moves in the world of insurance. The company uses AI and bots to sell insurance, and has flipped the business model to ensure that Lemonade is never in conflict with customers filing insurance claims.
But the product itself, the actual insurance policy, hasn’t changed much at all. For decades, insurance companies have been held to long, tedious legalese in their insurance contracts. In Lemonade’s case, the document is more than 40 pages long and incredibly difficult to understand.
For a company that wants to make buying insurance as easy and as consumer-centric as possible, the very product they sell is in complete opposition to that. Which is why Lemonade is re-writing the policy from scratch.
“I’m a recovering attorney, and I’ve been clean for 20 years,” said Lemonade CEO and cofounder Daniel Schreiber. “I think my English is pretty good, and I have a passing familiarity with insurance and generally I can’t understand this insurance policy. To do the next big thing in insurance means changing insurance. It’s not been done in generations. This is a historic document that’s been optimized around lawyers.”
So Lemonade has re-written the whole thing to read like a blog post. Policy 2.0,