Take one traditional UK insurance giant, with a history going back decades as Norwich Union. Now known as Aviva, they have partnered with upstart insurtech Lemonade, who made their name settling claims faster and smoother than people in the industry thought possible, just five years or so back.
Lemonade (NYSE: LMND), officially launched today in the United Kingdom. Residents across the UK can now get Lemonade Contents insurance instantly, from anywhere, on any device, as well as file claims and get paid in seconds.
All good. But that isn’t a USP anymore, lots of brands let you file a claim with pics and video. Today’s launch follows Lemonade’s previous launches in France, Germany, and the Netherlands, which shows the scale of Lemonade’s ambition, but they are clever to partner with established brands, rather than try to battle them for market share from scratch. For Aviva it offers benefits by bringing a younger demographic to its attention, so it’s win-win. In theory.
WILL WOKE MARKETING PAY OFF?
Maybe so. It works to an extent for some brands in the UK, which of course has a diverse population and a highly vocal array of single cause activist groups, representing everything from Trans rights to the Muslim Council of GB. But woke politics is a double-edged sword when it comes to marketing and many a brand has taken a pounding on social media over everything from Brexit to female changing rooms on the High Street.
Lemonade has already partnered with Stop Hate, a left-wing activist charity formerly known as the Leeds Racial Harrassment Project. Although since the 1990s Stop Hate has broadened its remit and gained more funding from the UK government, Police forces and Councils.
Nobody can argue against Hate per se naturally, but the definition of Hate Crime in the UK is a grey area and closely linked to cancel culture. Lemonade could end up in a position where its adopted charity is busily getting someone high profile sacked from the insurance, academic or public sector, but time will tell. Every brand ultimately has a choice to make regarding its moral compass and how well – or badly – that plays out with its core consumer base.
On the plus side, Lemonade is entering the UK woke politics minefield with a savvy, experienced partner in the shape of Aviva, who have championed women’s empowerment at C-Suite level for some years. Advice on local customs surrounding Hate definitions and activist causes will be on hand for Lemonade, to save them from making schoolboy – sorry school-non binary person – errors.
TENANT MARKET & KIDULT EXPERIENCES
Both Aviva and Lemonade can target younger, woker consumers who are stuck in rented accommodation for the forseeable future. They generally don’t like Contents insurance, but maybe a modern approach of insuring Vinted clothing stock, festival tickets/travel, vinyl collections or bicycles, e-scooters etc offers an opportunity for an on-demand insurance product that can be switched on or off via an app. And costs less than a bottle of Aldi wine.
Many under-30s live with their parents, so they have zero asset coverage to worry about. Bank of Mum & Dad take care of lost phones, bikes, laptops etc. The challenge is reaching that generation and making them realise they have a future, insurable experience which has a high value to them and will probably not be covered by their long suffering parents.
“We’re excited to be appointed as the long-term partner for Lemonade in the UK.” says Aviva, “We share a common outlook for how digital, AI and data can transform customer experiences, and the role insurers can play in building stronger communities. By joining forces we can ensure compelling propositions reach a broader range of customers, including renters, an under-served yet growing segment of the UK insurance market. In our 325 year history we have adapted and thrived in a changing world and our partnership with Lemonade is a marker of our intent to continue just this.”
Residents in the UK can find out more at lemonade.com/uk.
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