Lemonade quickly stealing clients from ‘old insurance companies’, says co-founder

Lemonade, an artificial intelligence-focused insurtech company, more than doubled its clients in the past two months as “customers are ditching incumbents for Lemonade,” Shai Wininger, Lemonade co-founder, said in a blog posted on medium.com.

While the company offering renters and home insurance counted around 6,000 customers at the end of March, this number jumped to about 14,300 by the end of May.

Customers switch to Lemonade from ‘old insurance companies’ on a daily basis, with 21.5 percent of switchers coming from GEICO, 20.5 percent coming from State Farm, 17.1 percent from Allstate, 10.5 percent from Liberty Mutual, 5 percent from Progressive and the rest from companies like Farmers, USAA and others, Wininger wrote in the blog.

Lemonade continues to grow among its primary demographic, with 78 percent of its customers between the ages of 25–45, and mostly urban dwellers, Wininger added.

“I’d also like to take this opportunity to thank our customers who work for Liberty Mutual, State Farm, Allstate, Travelers and Progressive. Don’t worry guys, your secret is safe with us ;)” Wininger wrote.

Lemonade is now licensed in 7 new states, and will be launching there soon, Wininger noted. Texas, New Jersey, Michigan, Arizona, North Carolina, Virginia and Rhode Island will join New York, California and Illinois, where you can already buy a Lemonade policy, he wrote.

Love insurtech? Join us at Intelligent InsurTECH Europe 2017. Find out more here.

Today’s stories

Lloyd’s Novae Syndicates put “under review for possible downgrade”

Reinsurance rate reductions accelerate in June renewals: JLT Re

‘More efficiently structured’ ERGO to contribute over $600m to Munich Re profit

Marsh introduces aircraft financing product

Deutsche Rück achieves better rates in German fire/property insurance

Lloyd’s Market Association sets up third party capital committee

Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.