Insurtech Lemonade has begun its expansion into Europe by launching its current services, and its new Policy 2.0, in Germany.
Backed by a reinsurance agreement with AXA, Germany is the first country to offer Lemonade to consumers. This includes Policy 2.0 which offers consumers contents and liability insurance instantly from any device.
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“We chose Germany for our first international launch because it combines a very traditional insurance industry, with a very forward thinking, digital-first consumer,” said Shai Wininger, Chief Lemonade Maker and co-founder of Lemonade.
“Insurance that is instant, transparent, affordable, and mission-driven has universal appeal, which is why we look forward to launching in many more countries in the months and years to come.”
In addition, Lemonade has entered into a multi-year reinsurance agreement with AXA Germany to share its insurance-related risk.
“Rethinking insurance from a customer’s perspective is key to our mission. Therefore, AXA fosters self-driven innovation and partnerships more than ever. Our cooperation with Lemonade is strategically oriented, with reinsurance representing a first step in this direction,” said Alexander Vollert, CEO AXA Germany.
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By GlobalDataLemonade has long been rumoured to expand into Europe, but this is the first definitive move.
Dan White, managing director of Ninety Consulting, believes the traditional market had been “nit-picky” about the company’s ratio but that Lemonade “are not behaving (nor seeking valuations) like an insurer with great tech, but rather like a tech company with neat insurance products”.
Overall though, the firm remains “the darlings of insurance industry”, according to White, and what opprobrium they do attract comes “out of jealous indignation”.
Launched in New York in 2016, Lemonade utilises AI to drive its offerings. Furthermore, it only takes a flat fee for its operations and gives remaining underwriting profit to non-profit organisations.
Lemonade is licensed and supervised by the Dutch Central Bank (DNB), and has established its European headquarters in Amsterdam. The company set up operations in the Netherlands due to its collaborative and seasoned regulatory environment, coupled with a centralised hub of talent from around the world.
