“Transform insurance from a necessary evil into a social good”

Founded: 2015, New York, USA.

Category: Insurance/Fintech

Primary office: New York, USA.

Core technical team: New York, USA.

Status:Public Lemonade Inc. (LMND)


Amount raised: USD$480 million (7rounds – July 2019)


  • Lemonade operates a “for social good/benefit” business model – takes a flat fee for business operation, pay claims and donates up to 40% of unclaimed funds to a social cause selected by the customer while onboarding.
  • Leverages both AI and behavioral science to provide insurance rates to its clients.
  • Offers AI-driven low-cost insurance policies/plan and claim benefits for homeowners, renters and pet-owners.
  • Invests in artificial intelligence, advanced data analytics and machine learning to automate and improve company processes
  • Insurance plans and claim benefits


  • Valuation: USD$3.8 Billion (2020)
  • Estimated Revenue: USD$26 Million (2020)
  • Over 18 million site visits and 907,136 inbound inquiries
  • Sale of over 1.2 million policies (including renewals) – 100% of them by AI Maya(chatbot)


  • 1,206 Distribution partners and 92 charity alliances
  • Total give back funds – USD$1.1 million (2020)
  • Expands Animal Health Insurance to Cats and Dogs in U.S.
  • Launch of Policy 2.0 for European market


  • Monthly subscription for Insurance plans as low as $5; Homeowners, Renters and Pet health Insurance
  • Lemonade API – a licensed API integration for third parties such as real estate companies, ecommerce platforms, Smart Home security companies, Insurance-as-a-service companies, etc.
  • Digital Insurance service platform:
    • AI Maya: Engaging virtual assistant that collects information, provides quotes and handles the payments.
    • AI Jim: This is the claims bot. For the most part, he has been able to handle roughly a third of the cases. But even when a case is passed along to a human, the claim is generally much easier to work out because AI Jim has already done quite a bit of work on the matter.
    • CX AI: This is the bot that answers customer questions


  • Partnership with financial institutions and distribution partners
  • Targeted Google Ads and email marketing
  • Adoption of customer engagement platforms – Community; for social interactions between clients and blogs for content marketing
  • Social media presence; Instagram, Facebook, LinkedIn and Twitter
  • Insurance provider-to-provider migration


  • Artificial intelligence/machine learning
  • Big Data Analytics & Cloud Computing

Distinct AI Features


  • Machine Learning

  AI use

  • Lemonade uses machine learning to underwrite customer risk and handle claims transforming insurance from “grudge purchase” to a “convenience purchase”.
  • When issuing insurance policies, Lemonade uses big data to predict risks and quantify losses by placing the customer in a risk group and thereby quoting a relevant premium. These groups of “uniform insurers” share similar risk behaviors and are compiled by AI algorithms that gather extensive customer data and monitor loss ratios (“ratio of claims paid by an insurer to premiums earned”.) The more data accumulates, the more recursive risk patterns emerge enabling more precise assessments.

AI useRate of return on customer’s investment to make AI work


  • Very fast response easy to use digital platform with low cost monthly subscription fees

Long term:

  • High premium fees, very fast easy to use digital platform


  • Credit and claim history data

Quantum Computing

  • N/A



  • Founder led Management team of serial entrepreneurs and tech experts
  • Artificial intelligence, Machine learning expertise
  • Proprietary API Licensing
  • Business Ecosystem; Partnership with financial institutions
  • Insurance Dictionary; serves as a library containing hundreds of keywords
  • High profile Investor backing


  • Seamless claim requests powered by AI
  • 24/7/365 Customer service using automated chatbots
  • Adoption of customer engagement platforms – Community; for social interactions between clients and blogs for content marketing
  • User friendly, Omnichannel interface that allows smooth transition between multiple devices
  • Giveback to charities; built on behavioral economics
  • Use of Machine Learning to underwrite customer risk and handle claims
  • Ease of migration from previous insurance company/provider


  • Improve product offering; Integrate ‘human touch’ into AI
  • Increase market size and footprint across the USA and beyond (customer onboarding)
  • Continuous transparency as regards processes, internal data and company policie


  1. Al – Saad, T. 2019. Marketing to Millennials – Lemonade’s Growth Strategy. https://www.growthmanifesto.com/lemonade-growth-study. WebProfits.
  2. PYMNTS. Lemonade CFO On The Insurance Industry’s ‘Innovator’s Dilemma. https://www.pymnts.com/innovation/2020/lemonade-cfo-on-insurance-innovation-dilemma/
  3. Petra, 2018. Lemonade reinvents the insurance industry with machine learning. https://digital.hbs.edu/platform-rctom/submission/lemonade-reinvents-the-insurance-industry-with-machine-learning/. HBS Digital Initiative
  4. Crunchbase. 2020. Lemonade Funding Rounds. https://www.crunchbase.com/organization/lemonade/company_financials
  5. Taulli, T. 2020. Lemonade IPO Shows The Power Of AI (Artificial Intelligence). https://www.forbes.com/sites/tomtaulli/2020/07/03/lemonade-ipo-shows-the-power-of-ai-artificial-intelligence/#e3c14f53aebb. Forbes.
  6. Kauflin, J., Stoller, J. 2019. First, Fire All The Brokers: How Lemonade, A Millennial-Loved Fintech Unicorn, Is Disrupting The Insurance Business.https://www.forbes.com/sites/jeffkauflin/2019/05/02/lemonade-fintech-insurance-unicorn/#12315fca6cde.Forbes.
  7. Aziz, A. 2020. The Power of Purpose: How Lemonade Is Disrupting Insurance With Goodness (And A New Foundation). https://www.forbes.com/sites/afdhelaziz/2020/03/09/the-power-of-purpose-how-lemonade-is-disrupting-insurance-with-goodness-and-a-new-foundation/#1ff495587288Forbes.


  • Dami Balogun
  • Yinka Olanrewaju-Olawepo