Here’s a fintech joke for you – what do you get when you combine a robot and a lemon? The answer – an investment in one of the hottest insurtech startups by one of the largest VCs in the world. Yeah, the punchline wasn’t that great, admittedly, but this IS an interesting story. Japanese robotics manufacturer Softbank, whose high profile CEO earlier this year promised President Trump their VC would invest $50B and create 50,000 new jobs in the US, has invested along with Allianz, Sequoia Capital and Google Ventures in a $120M venture round to expand the hot new insurtech Lemonade. The firm uses artificial intelligence to calculate new customer premiums and also donates “a fixed rate of its customers’ premiums and donates any unclaimed money to charity at the end of the year”, according to a story posted in Inc. earlier this year. Lemonade is a very interesting fintech company and we see big things unfolding for them in 2018 as they continue to expand their footprint nationally.
“Softbank has become the latest big name investor to take a stake in New York-based insurance start-up Lemonade.
Lemonade, which sells insurance to people who rent property in the US, is one of the most high profile of the wave of so-called insurtech start-ups aiming to disrupt the centuries-old insurance industry.
The company recruited behavioural economist Dan Ariely to give it insights into customer behaviour, and says that it has paid out on claims as little as three seconds after they were made. It also has a novel business model, taking a flat fee for its services and giving a portion of unused premiums to charity each year.
Unlike many other start-ups, Lemonade has been going through the laborious process of securing its own insurance licences. It now has licences in 25 US states and has sold 80,000 policies since launching a year ago…:
Full Story at Asia.Nikkei.com