The day before Chis Sandiland's insights I stated:
"It is all very well Lemonade proclaiming "Forget everything you know about insurance"
The hard reality of insurance is that you cannot do that. "70% of the total cash flow of an insurer flows through the claims department and fulfils the promise to indemnify insurance policy holders (PH).
Source: Marty Ellingsworth; Celent Report "Data Science in Claims- Digital Acceleration and Customer Delight" 15th June 2020
Lemonade is finding out that truth. Large loss claims need claims adjusters backed by world-class claims management technology to provide empathy and human support. Efficiency and effective engagement between customers, the insurer's teams and (usually forgotten in claims management systems) the supply chain. Incumbents recognise this and are transforming. "
Chris Sandiland's article (follow link below) raises more questions and well worth reading.
I believe that Lemonade has not answered our questions. Indeed, Lemonade’s model has become increasingly standard over time. The peer-to-peer description was quietly dropped in late 2016 and ‘give back’ appears to have become less central to its proposition over time. Its website today looks similar to any other direct carrier’s site now. Sure, many reviews suggest that the customer experience is good, but we would expect no less from a business that has been able to develop without legacy technology or operational constraints. But I just don’t see that Lemonade has had a significant impact on the industry, let alone transformed it in any meaningful way.