Lemonade: B-Corp Startup
Lemonade is an InsurTech startup. They provide hassle-free and flexible insurance packages, furthermore, they are a certified B-corp company. B-Lab is a non-profit global organisation, and they issue the B-corporation’ certificate. B-Lab has the aim of redefining the role of business in society. The certification is to recognise that the receiving company strives to make a positive impact. B-corps place importance on balancing purpose and profit. This in turn helps to drive a global movement of using businesses as a force for good.
Lemonade allows you to insure a wide variety of products. You are able to choose the deductable amount. The lower you choose, the higher the monthly payments. Lemonade explains all the rules and policies in a very easy and transparent way. All of their operations seem to be conducted very quickly. According to their website, 30% of claims are paid out in seconds!
Lemonade: Social FinTech offering
The insurance industry has had a history of finding legal loopholes to minimise payouts, increase fees and make the process a lot of effort. Therefore, Lemonade’s transparency in handling claims could also be considered a benefit in itself. However, Lemonade’s real social impact is done through their ‘Giveback’ initiative. The Giveback scheme works as Lemonade takes a flat fee to run everything. They then pay any claims throughout the year. Finally, Lemanade tallies up the remaining unclaimed money. They then donate up to 40% of it to a charity of the clients’ choice. Last year, they funded a water system for a village in Africa. In addition they helped deliver tens of thousands of meals to those in need. They also built homes for families in Central America. This year they have donated €555k, very impressive!
The InsurTech sector has been gaining popularity in these past few years. Some examples of innovative products are as follows. Ultra personalised offerings based on alternative data, insurance covered per hour (or even by minute!), insurances tailored to the gig-economy via an insure-per-use basis, car insurances based on driving habits and more! It’s good to see that Lemonade is setting an example with its push for social impact. Hopefully others in the sector will follow suit.