Lemonade is launching its renters insurance coverage in France. That is the corporate’s third European launch after the Netherlands and Germany. Initially from the U.S., Lemonade is now a public firm with a present market capitalization near $4 billion.
Lemonade has optimized its insurance coverage product in numerous methods. First, it’s imagined to be simpler to enroll with Lemonade in contrast with a legacy insurance coverage firm. Second, the corporate desires to carry again belief by taking a flat charge for its operations.
Premiums are then pooled collectively and used to pay again claims. If there’s cash left on the finish of the yr, prospects can select to donate to nonprofits. Lemonade can also be a licensed B-Corp.
But it surely’s value noting that different insurance coverage firms attempt to place themselves as socially accountable, resembling MAIF. Insurtech firms aren’t reinventing the wheel on this entrance.
Third, Lemonade tries to pay you again as shortly as doable after you file a declare.
Likelihood is you don’t assume that a lot about renters insurance coverage. But it surely’s a profitable trade. As an illustration, residence insurance coverage is a authorized requirement in France. As a consequence of tenant turnover, there are lots of alternatives to leap in and persuade prospects to change to Lemonade when individuals transfer to a brand new place.
Let’s see how the battle between Lemonade and Luko performs out in France.