Lemonade has created an ‘open source’ insurance policy and will eventually stop offering traditional insurance policies to its customers.
In a bid to make insurance cover more understandable for customers, the on-demand insurer will simplify the terms of the insurance it will offer. The insurtech has said that the policy will be readable within 10 minutes, compared to taking over an hour to read a traditional policy.
It has called the change ‘Lemonade 2.0’, and it is based on consultation with US state regulators. Lemonade is currently available in 16 states across the US.
In a LinkedIn blog, Lemonade CEO Daniel Schreiber, said: “Each Policy 2.0 will be unique and dynamically-generated, based on the choices the user made. When the policy says that $20,000 of property is covered, for example, our live policy technology makes that sentence clickable, so the user can instantly change that to $30,000. If the user wants to add earthquake coverage, to take another example, they can initiate that from within the policy itself.
In a bid to make insurance cover more understandable for customers, the on-demand insurer will simplify the terms of the insurance it will offer. The insurtech has said that the policy will be readable within 10 minutes, compared to taking over an hour to read a traditional policy.
It has called the change ‘Lemonade 2.0’, and it is based on consultation with US state regulators. Lemonade is currently available in 16 states across the US.
In a LinkedIn blog, Lemonade CEO Daniel Schreiber, said: “Each Policy 2.0 will be unique and dynamically-generated, based on the choices the user made. When the policy says that $20,000 of property is covered, for example, our live policy technology makes that sentence clickable, so the user can instantly change that to $30,000. If the user wants to add earthquake coverage, to take another example, they can initiate that from within the policy itself.
“Zero exceptions may be unrealistic, because the price of such a policy would be unattractive, but the goal must be a radical reduction in exceptions, and ensuring they’re easy to understand and remember.”
Lemonade criticised the readability of traditional cover wordings and said that their new policy would use language that is easier for customers to understand.
“There are good reasons why policies use lingo that requires a law degree and a broker’s license to understand, but Policy 2.0 is about using contemporary English that the everyone understands,” said Schreiber.
“And the policy has to be way shorter. No document is ‘readable’ if it’s so long that no one actually reads it.”
Lemonade has not given a date for when the policy is due to go to market, but it will continue to provide its customers with an industry standard policy for the time being.
“This draft was created in consultation with state regulators, and will be submitted to all states once the community has had its say,” said Schreiber. “Until the approvals are in, Lemonade will continue to offer an industry-standard policy, with a view to letting users switch to Policy 2.0 once it’s available in their state.”
Lemonade is currently asking for input on the new policy from regulators, data scientists, competitors, consumers and tech experts.article is care of Post online.
Lemonade criticised the readability of traditional cover wordings and said that their new policy would use language that is easier for customers to understand.
“There are good reasons why policies use lingo that requires a law degree and a broker’s license to understand, but Policy 2.0 is about using contemporary English that the everyone understands,” said Schreiber.
“And the policy has to be way shorter. No document is ‘readable’ if it’s so long that no one actually reads it.”
Lemonade has not given a date for when the policy is due to go to market, but it will continue to provide its customers with an industry standard policy for the time being.
“This draft was created in consultation with state regulators, and will be submitted to all states once the community has had its say,” said Schreiber. “Until the approvals are in, Lemonade will continue to offer an industry-standard policy, with a view to letting users switch to Policy 2.0 once it’s available in their state.”
Lemonade is currently asking for input on the new policy from regulators, data scientists, competitors, consumers and tech experts.article is care of Post online.
