US-based insurtech startup Lemonade has officially made landfall in Europe; the insurtech launched in Germany yesterday (11 June). Germany will become the first European country to offer Lemonade’s ‘Policy 2.0’, a specially designed consumer-friendly contents and liability insurance policy that is intended to be as easy-to-understand as possible and can be accessed instantly via a smartphone or similar device. The proposition uses technological approaches such as artificial intelligence and behavioural economics as its foundations.
As part of its German strategy, Lemonade has signed a multi-year reinsurance agreement with AXA Germany, to spread its risk potential. Its European headquarters is in Amsterdam, in the Netherlands.
“We chose Germany for our international launch because it combines a very traditional insurance industry with a very forward-thinking digital-first consumer,” said Lemonade’s Co-Founder and ‘Chief Lemonade Maker’ Shai Wininger. “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.”
Commenting on the two entities’ partnership, AXA Germany CEO Alexander Vollert said: “Rethinking insurance from a customer’s perspective is key to our mission. Therefore, AXA fosters self-driven innovation and partnerships more than ever. Our co-operation with Lemonade is strategically oriented, with reinsurance representing a first step in this direction.”
An easy-to-understand policy will no doubt be an attractive proposition to customers who have no desire to wade through pages and pages of dense small print – and making it easily digital available is a major bonus – so it will be interesting to see whether Lemonade’s Policy 2.0 catches on, and whether insurers in the travel and other spaces look to emulate it.