Israeli-founded, New York-based insurance tech startup Lemonade announced that it was officially bringing its business to Europe, starting with Germany.
As part of the launch, Lemonade announced it was also releasing a new “radically simplified, modernized, and digitized” insurance policy. Dubbed Policy 2.0, the brief lays out the terms and conditions of the insurance contract in a short, plain, and easily comprehensible way.
Lemonade, founded in 2015 by Israeli entrepreneurs Daniel Schreiber and Shai Wininger, combines behavioral economics, artificial intelligence, and chatbots to deliver renters and homeowners insurance policies and handle claims to users in over two dozen states across the US.
Lemonade’s renters’ insurance pricing starts at $5 per month and their homeowners’ insurance starts at $25 per month.
The company also has a charitable component where revenue left over after paying claims goes to charities of users’ choices.
Schreiber told TechCrunch that Lemonade resonates with “young consumers in a universal way.”
“Young consumers in Tokyo and Berlin and Tel Aviv and New York and SF [San Francisco] all like interacting with chatbots, having zero hassle, and appreciate an unconflicted business model based on a charitable component. The new generation of consumers have [sic] that common denominator, in all those cities, where a tech brand is able to straddle countries and languages,” he said.
Lemonade recently raised $300 million in a Series D funding round led by Japan’s Softbank Group Corporation, with participation from Allianz, General Catalyst, GV, OurCrowd and Thrive Capital. The company is now reportedly valued at over $2 billion.