After launching in Germany and the Netherlands, Lemonade has announced its arrival on the French market. Its comprehensive home insurance offer will be available in France by the end of the year. More details
Protect your home and possessions in just a few clicks
Launched in 2016 by Daniel Schreiber and Shai Wininger, New York-based Lemonade specializes in online home insurance. Its offering is aimed at both renters and homeowners. The startup relies on Artificial Intelligence and behavioral economics principles to replace brokers and bureaucracy. The aim is to eliminate paperwork and focus on immediacy.
At the same time, Lemonade offers liability insurance and pet health insurance. The company is remunerated by a fixed deduction from the premiums paid by its customers. It undertakes to donate unused funds to associations chosen by policyholders.
Lemonade launches in a third European country
The insurance company recently announced that France will be its next European market, following the Netherlands and Germany in 2019. From the launch of its offer in France, consumers will be able to subscribe in just a few clicks, at any time and from any device. They will be able to declare their claims and be reimbursed quickly from the Lemonade app.
Like its German and Dutch counterparts, the French product will be based on Police 2.0, a short, easy-to-understand and transparent document compared with the dense fonts that dominate the market.
The insurance sector, turned upside down by Fintech
Lemonade isn't the only one to shake up traditional insurers by going digital. Luko, a young French startup, is also determined to make its mark on the market and expand internationally. In 2019, the neo-insurer raised a record €20 million in funding from the American Accel Partners, the Californian Founders Fund and the European Speedinvest. Luko currently insures over 20,000 French people, half of whom live in the Paris region. To achieve its ambitions, the company plans to devote 7 million euros to R&D and open offices in two European countries in 2020.
Another rising fintech in the insurance sector is Alan. The health insurance specialist has raised nearly 125 million euros since its creation in 2016. In 2019, its sales totaled 16 million euros, up 280%, according to its solvency and financial position report.
As a result, the ambitions of fintechs in the insurance sector are growing ever stronger. Faced with this increased competition, traditional insurers have no choice but to focus on digitalization and customer service to stand out from the crowd.