Lemonade Insurance Company announced today that its tech-driven homeowners' and renters' insurance is now available in California — just two days after the Golden State's Department of Insurance publicly welcomed Slice and its on-demand, short-term insurance coverage to its carrier pool.
With InsurTech companies disrupting various corners of the insurance industry, Lemonade, along with its digital and mobile storefront fueled by artificial intelligence and behavioral economics, has been on the lips of executives from Wall Street to Main Street.
California is the third state, behind New York and Illinois, in Lemonade's nationwide expansion, which the company expects to complete "in a matter of months."
InsurTech companies in general like to plant stakes in California because the state presents a high regulatory hurdle and has a built-in consumer audience for high-tech products and services. Lemonade may also attract fans in California with its charitable underwriting model, in which underwriting profits are donated the charities that customers choose.
|Key milestone for Lemonade
"Most Americans view insurance as a necessary evil, rather than a social good," Lemonade President and Cofounder Shai Wininger said in a press release. "That's something Lemonade is determined to change… Expanding to California is a key milestone on Lemonade's journey. The tech capital of the world deserves insurance powered by AI, and the people of California deserve to see insurance underwriting profits funding their nonprofits."
Today's Lemonade news also highlighted the company's new celebrity backer: Actor and entrepreneur Ashton Kutcher.
"The amazing tech and social impact of Lemonade was the reason we joined the company as investors," Kutcher, co-founder of Sound Ventures, said in a prepared statement. "I think Californians will find Lemonade's unique combination of value, values and simplicity hard to resist. I know I did."
|Surplus lines broker enters market
Californians also gained access to another InsurTech product this week. On Monday, the California Department of Insurance released a statement welcoming Slice Insurance Technologies as a surplus lines broker. Slice sells on-demand, short-term insurance for Airbnb and other homeshare hosts who find their homeowners' insurance lacks full coverage for such rental arrangements.
Homeowners who offer short-term rental facilities are advised to carefully read their homeowners' policies and investigate the extent of their coverage when it comes to possible damage caused by a short-term renter or on-site injury sustained by a short-term renter.
"This start-up is offering an innovative product to the California market, giving consumers the opportunity to purchase a product designed to meet their unique coverage need," said Insurance Commissioner Dave Jones. "We continue to encourage insurers to develop new products that fulfil the demands of a technology-driven economy. The department welcomes Slice to the California market and looks forward to more start-ups and traditional companies filing products in the future."
Slice policies are usage-based, and are specifically designed for homeshare hosts.
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Elana Ashanti Jefferson
Elana Ashanti Jefferson serves as ALM's PropertyCasualty360 Group Chief Editor. She is a veteran journalist and communications professional. Reach her by sending an e-mail to [email protected].
