New York-listed insurtech company Lemonade has launched in the UK in partnership with insurer Aviva.
The launch furthers Lemonade’s expansion into the European market, having already established its presence in France, Germany, and the Netherlands.
The partnership with Aviva enables Lemonade to leverage the insurer’s presence and knowledge in the UK market.
“Pairing Lemonade’s strengths with Aviva’s promises to deliver an insurance that is digitally native, yet rooted in the birth of modern statistics in the 1700s,” said Daniel Schreiber, Lemonade co-CEO and co-founder.
“It’s the best of both worlds, giving people a refreshing experience backed by a company they’ve known and trusted for years.”
Established in 2016, Lemonade is an insurance provider whose platform uses AI technology to sell policies, as well as process and settle claims.
Lemonade expands its global capabilities
Lemonade’s entry into the UK market comes three years after it first entered Europe by launching in Germany in 2019.
Similar to the UK launch, Lemonade had also entered the EU market in alliance with an existing insurer, AXA, to share insurance-related risk.
Besides expanding in Europe, the insurtech has also been beefing up its capabilities in the US.
In November last year, it launched Lemonade Car, an automotive insurance product, to capture the car insurance segment. It further bolstered the product by strengthening the claims handling process by partnering with automation specialist fintech, Mitchell.
In July, Lemonade further bolstered its car insurance expertise by acquiring automotive insurer Metromile in an all-share deal.
The recent series of development highlights Lemonade’s continued push for growth despite its recurrent losses, which in the second quarter of 2022 reached $67.9 million.
The losses, however, are largely a result of an increase in operating costs rather than a lack of clients. In the second quarter of 2021, the firm recorded a 31% increase in customer count.
Insurers make digital insurance bet
Lemonade’s popularity underscores the growing demand for digital solutions in the insurance industry.
A 2022 survey by Accenture revealed that nearly 30% of dissatisfied claimants had switched carriers in the past two years, with another 47% considering the same route.
As a result, traditional insurers like Aviva have been open to partnerships with insurtechs to leverage their technology to better serve the customers.
In July, insurance giant Alliance co-led a $250 million Series F funding for insurtech group Coalition to support the latter’s international expansion. The investment came a month after Allianz agreed to lead Coalition’s UK cyber insurance program.