A new lawsuit against Lemonade and the firm's recent Twitter snafu provide an object lesson about the challenges of balancing demonstrations of innovation with public fears about how companies are using AI. (Photo: Gabby Jones/Bloomberg)

Being a disruptor is hard. It requires taking disproportionate risks, pushing the status quo, and — more often than not — hitting speed bumps.

Recently, Lemonade hit a speed bump in its journey as a visible disruptor and innovator in the insurance industry when a privacy class-action lawsuit over its alleged collection and use of biometric data was filed on August 20. I am not privy to any details or knowledge about the case or what Lemonade is or isn't doing, but the Twitter event and public dialogue that built up to this moment brings forward some reflections and opportunities every carrier should pause to consider.

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