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A lot of commenters are speculating as to AI analyzing the risk, which, as they also point out, isn't necessarily a new idea. However, if I interpret the articl
by surferninja 10y ago
A lot of commenters are speculating as to AI analyzing the risk, which, as they also point out, isn't necessarily a new idea. However, if I interpret the article correctly:
>Indeed it has so been achieved. It is available 24/7, courtesy of a delightful bot who will fashion you a $5 policy in 90 seconds and with zero paperwork.
Between this and the comments about acquisition costs, it seems like they're saving a lot compared to traditional (legacy) insurance companies by cutting out customer service reps and agents.
- nerdponx 10y agoI'm a happy Lemonade customer. I signed up because a) the policy was dirt cheap, and b) the policy agreement was clear and also quite generous. It was not AI-generated: it's just a PDF like every other insurance policy agreement. And the policy was only so cheap because they let you take out a policy with a lower coverage limit than you would normally be able to find from a traditional insurer. Moreover, I didn't get pushy sales calls after getting a quote (Liberty Mutual was particularly offensive in this regard). I was skeptical, then my phone got stolen. I reached right out to their "emergency hotline" and told them what happened. After some initial confusion I got to work directly with a customer service rep who basically bent over backwards to ensure that I was satisfied. It didn't seem like a terribly sustainable way to do things, and I wouldn't expect that kind of service once they start to grow, but it worked out great for me and I sure as heck got my money's worth in coverage.