• Jul. 23, 2017, 5:36 pm

Socially conscious insurance fintech Lemonade launches in California

 

Ashton Kutcher is among the backers of insurance fintech Lemonade, which launched in California today. It is also available in New York and Illinois.

Powered by a blend of artificial intelligence and behavioral economics, Lemonade offers homeowners and renters insurance online and through its mobile app.

Lemonade takes a 20 per cent flat fend returns underwriting profit to charities designated by the insured through its annual Giveback program.

“Most Americans view insurance as a necessary evil, rather than a social good (and) that’s something Lemonade is determined to change,” Lemonade cofounder and president Shai Wininger said. “Expanding to California is a key milestone on Lemonade’s journey.

“The tech capital of the world deserved insurance powered by AI, and the people of California deserve to see insurance and underwriting profits funding their nonprofits.”

That is what attracted Ashton Kutcher.

“The amazing tech and social impact of Lemonade was the reason we joined the company as investors,” Mr. Kutcher, who is cofounder of  SoundVentures, said. “I think Californians will find Lemonade’s unique combination of value, values, and simplicity hard to resist.”

In a release Lemonade said fraud consumers as much as 38 per cent of all money in the traditional insurance system, resulting in higher fees and carrier suspicion. Studies conducted by Lemonade chief behavioral officer and New York Times best-selling author Dan Ariely have mapped out the drivers behind the fraud and incorporated some into Giveback’s design.

 

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