GlobalData Offers a Viewpoint On The Lemonade Thing

Following the news that leading US insurtech, Lemonade, has entered the UK home insurance market, Benjamin Hatton, Associate Insurance Analyst at GlobalData, a leading data and analytics company, offers his view:

“Lemonade’s renters insurance product has proved hugely popular in the US, as well as France, Germany, and the Netherlands. By offering cheap and tailored policies to a market segment that would otherwise not purchase insurance, Lemonade has found a perfect angle to enter new markets.

“With less than 60% of all UK renters owning a home contents policy, there is a huge swathe of potential and untapped consumers to whom Lemonade can market. As the cost-of-living crisis continues to impact consumers across the UK, renters may be inclined to turn towards Lemonade and its product(s) with its contents insurance starting at just GBP4 ($4.50) a month.

“Lemonade’s insurance is designed around younger generations’ demands and is fully digital. This will suit renters who may need to cancel a policy if they change residence or as a financial cost-cutter. Using artificial intelligence-based tools at both the front- and back-ends of its app increases efficiency and helps to reduce costs that Lemonade can impart onto its customers.

“As investment into the insurtech sector dries up, Lemonade will be looking to grow its customer base to provide organic growth that has eluded many insurtechs so far. GlobalData’s Deals Database indicates that investments into the insurtech sector in Q3 2022 is a third less than what was seen in the previous year. With a more diversified risk portfolio, and with the added backing of Aviva as a reinsurance partner, Lemonade will be in a strong position to show healthy profitability as insurtechs enter a challenging economic period.”

About alastair walker 10205 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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