Lemonade: the US insurtech unicorn lands in France

After Holland and Germany, Lemonade lands in its third European country with the launch in France. Fast, open and customer-centric, B corp insurtech continues its growth in Europe

Published on 05 Feb 2021

New York-based unicorn insurtech Lemonade lands in its third European country with a launch in France, after entering the Dutch market earlier this year and the German market in June 2019. 

This is a highly competitive market, as home insurance is often required by law in France, but the founders weren’t scared off by that. “We will be able to stand out thanks to our unique mix of values and technology. We will empower French consumers to get fast, personalized, mission-oriented coverage that can be purchased from any smartphone through our app,” said CEO and founder Daniel Schreiber. 

Lemonade, whose evolution we’ve been following, is the first insurtech certified as a B Corp and listed on the NYSE this July raising three times the capital it had targeted, with giants like SoftBank, Sequoia Capital, GV, Aleph behind it. As of July 2020, it had raised $480 million in venture capital, including about $300 million invested by Japanese giant SoftBank, which holds about 21.8% of the shares. 

The main feature of Lemonade is its insurance model based on ethical business, which applies the theories of behavioral economics: Lemonade retains for itself a fixed amount for the transactions carried out, and donates at the end of the year underwriting profit not used to cover claims to charities chosen by the customer. 

Powered by artificial intelligence, machine learning and chatbot technologies, Lemonade also stands out as one of the fastest apps to manage an underwriting process, which takes a couple of minutes at most, and has come to handle a claim in just 3 seconds. It is probably also the first insurance company to have opened its API to the developers’ world, allowing external players such as ecommerce, financial services, home security and more to integrate its insurance proposals into their service, offering customer coverage without the need for any further processing steps. 

Fast, open and customer-centric, Lemonade is committed to further growth in Europe, and one of its goals is Italy. In an insurtech environment marked by a growing customer appetite for testing non-traditional players, the company could find a breeding ground – and perhaps even shake up a sector where the supply of digitalisation is still struggling to meet growing demand. 

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