Thu, 31 December 2020 | insurance fintech insurtech
Lemonade, the insurance company powered by artificial intelligence and behavioral economics, announced it has more than one million customers. Lemonade hit this milestone about 1,500 days after its initial launch, some 15-45 years faster than industry leaders such as State Farm, Allstate, GEICO, and USAA. Lemonade previously reported a total of 941 thousand customers at the end of the third quarter of 2020.
“We’re proud to hit the one million customer mark so early in the life of the company,” said Shai Wininger, Lemonade co-founder and COO. “With every new customer, our system grows smarter, our underwriting gets better, and our prices become more accurate and fair. At Lemonade, one million customers translates into billions of data points, which feed our AI at an ever-growing speed. Quantity generates quality.” Lemonade's In Force Premium (IFP), defined as the aggregate annualized premium for customers as of the period end date, increased by 99% to $188.9 million at the end of the third quarter of 2020 compared to the third quarter of the prior year. The firm attributed this increase to a 67% increase in the number of customers, as well as a 19% increase in premium per customer. Premium per customer, defined as in force premium divided by number of customers, was $201 at the end of the third quarter, up 19% from the third quarter of 2019, primarily due to a continued shift of product mix toward higher value homeowner policies, the introduction - with Pet insurance - of multiple policies per customer, as well as growth in the overall average policy value. Lemonade is operational in the majority of the United States and in three European countries, offering insurance products spanning homeowners, renters, and pet health insurance. Consumers rate Lemonade #1 across multiple platforms, citing the hassle-free digital experience with lightning-fast claim payments, best-in-class customer service, and an unconflicted business model. Source: Lemonade press release and Investor Relations documents