Lemonade Shakes Up Insurance Industry Norms
January 24, 2017
Lemonade Shakes Up Insurance Industry Norms
Have you ever tried to claim for a broken TV, a stolen iPhone or a rain damaged roof? It can be a hideous experience – involving loss of valuable time, tons of annoying phone calls and usually very unhelpful people.
Recently Megan, our Head of Strategy, had a tree fall on her garage. She rang her insurance company almost immediately to get the claim going. After being on hold for a number of minutes and spending another 10 minutes explaining the problem, she was told that an assessor would call within 24 hours…
They rang 3 days later and Megan was informed they would come out to her home to assess the job 3 weeks later. This incident is just another example of why this industry can be known for bad customer experiences. We, as the customer, assume it is going to be a long, hard slog to get the help we need before we even put in a claim.
If only Megan lived in New York where she would be insured by Lemonade, an insurance company that changes the whole model. The company treats your premiums like your money and pays claims in seconds. Unlike other insurance companies, that benefit from holding onto your money, Lemonade takes a flat fee and even gives back to a number of charities.
Lemonade is online only and powered by a number of Bots – Maya will sign you up with a personalised product and Jim will help with a claim. It is this Artificial Intelligence (AI) and machine learning that makes the business cost a fifth of the bigger companies and why it can pay premiums in seconds.
Most of us have read that AI has been predicted to be the big turning point this year when it comes to building powerful customer experiences. Unfortunately, in Australia today, Megan’s story is more common. Come on Lemonade – get your drink stands down here please.
Written by Pip.