The tech-based insurer launched in New York and sells renters and homeowners insurance policies.
The new Lemonade insurance company that made a splash in New York when it launched in the second half of 2016 is now stepping into California.
This new tech-based insurance startup promises consumers an application process as short as 90 seconds.
Moreover, the Lemonade insurance claims payment process can be as quick as 3 minutes, according to the company. The insurer received the necessary approval from the California Department of Insurance for the sale of homeowners and renters policies in the state.
This is the latest very large step for the company as it has now moved into the most populated state in the country. The goal, however, is to achieve licensing across the United States. Last year, Lemonade launched in New York. In April, made it into Illinois.
Lemonade insurance policies are sold online through a website as well as an official smartphone app.
The unique nature of this insurer has caused some to label it as an insurance industry “disruptor.” Some believe it will have enough appeal to consumers to be able to change the way insurance companies do business.
As such, Lemonade is part of the broader “fintech” movement; that is, the financial and technology trend. Companies launching based on fintech foundations are attempting to crack their way into old and highly traditional industries and disrupting their longs established business models.
Fintech businesses usually utilize available and widespread technology – such as mobile phones or cloud storage – to offer consumers access to the products and services they want through a much more convenient and available process. Among the products most appealing to Fintech ventures are insurance policies, loans, payments, money transfers and stock trading.
They cater to today’s consumer’s dislike for having to go to a bank , broker or agency to speak with someone in person. Instead, many shoppers would prefer to take matters into their own hands – particularly when they already feel they know what they want to purchase – and complete that task online no matter where they happen to be or which device they prefer to use. It is just that type of experience that Lemonade insurance applications, interactions and claims payments promise to provide.