Lemonade: Centering Insurance on the Consumer Experience
As the old trope goes, a couple of years ago, if you’d looked up the word “staid” in the dictionary, you probably wouldn’t be surprised to find the insurance industry listed as an example. But that was then and before companies like Lemonade began to make their mark.
When we first invested in Daniel and Shai in 2016, they were promising a fresh take on the personal property insurance experience. Long the realm of offline agents and reams of paperwork, up until that point, property insurance had enjoyed none of the advancements that mobile and digital technologies were delivering in other consumer verticals. Lemonade was to be a mobile-first interaction between customer and company. Consumers who were well habituated to text conversations could sign up for home or renters insurance in minutes. And if something unforeseen or unfortunate should happen, filing a claim was just as easy.
But Daniel, Shai, and team were not stopping there. Their business model was based from the start on giving back. When premiums exceed claims, the difference is donated to the customer’s charity of choice. In 2018, Lemonade and their customers gave $162,135 back to 15 charities and in 2019, that impact grew to $631,540.07, benefitting 26 organizations. That’s real, positive change with the potential for benefitting thousands of people.
Since we met the team, they have expanded from selling insurance in New York City renters to offering Lemonade in 28 states in the US and in 31 countries across Europe. They’ve earned the confidence of more than 729,000 customers and they’re maturing alongside some of their earliest customers who have brought Lemonade along as they’ve transitioned from renters to homeowners.
An initial public offering is a significant event for any company. It takes a tremendous amount of hard work and dedication to get a company to this place. That fact should not be lost when we say it’s just one of many important moments a team will experience in the process of building a truly enduring company. We’re incredibly proud of Lemonade and all of GC celebrates the Lemonade team on this exciting day.
— Joel Cutler and Team GC