Currently licensed to sell personal insurance in Ny, Lemonade plans to expand and set a standard within the insurance industry. According to Fortune, the startup Lemonade began by Daniel Schreiber and Shai Wininger and is loosely based on the principles of successful sharing economy companies such as Uber and Airbnb.
Lemonade aims to sell insurance policies online to the people who become a member of the peer-to-peer company.
It goes something similar to this-
You can join the online community at Lemonade and pay your payments just like you would for your traditional insurance agent/company. However, the premiums are pooled together by members of the audience for the payout of claims.
Sharing Economy Benefits to Insurance Consumers
Because consumers don’t have time or patience to hold back for days or weeks to start a brand new insurance policy, the opportunity to get instant coverage using the mouse click on the mobile phone app is extremely attractive. It offers consumers the opportunity to be insured immediately.
Here are several more self-described together with your new peer-to-peer model:
- A startup like Lemonade doesn’t have almost anything to gain by denying claims, so the likelihood of a quick and fair settlement increase.
- A reduction in fraud and far lower operating costs keep premiums low.
- Monthly fees are low (as low as $35/month for homeowner’s insurance, $5/month for renter’s insurance)
- Customers get a more personal buyer experience with peers instead of coping with large insurance companies, which will help rebuild the trust element in purchasing insurance.
- Monthly premium cash is considered “peer money,” and leftover funds from underwriting profits after a phrase are donated to a cause, chosen through the peer members.
This is as simple as no means a promotion of Lemonade specifically, just an acknowledgment that “the times they're a-changin’.”
And this is an excellent thing.
Customer Experience is evolving: Not Feeling the Love
There isn't any question that some consumers have a less-than-glowing opinion about insurance providers.
Many don’t like the thought of getting to pay for premiums to large and frequently impersonal firms. This consumer grievance is by no means restricted to insurance carriers (I’m looking at you too, finance industry).
If there must be a rate increase or perhaps a claim procedure gets complicated, the consumer/insurance company relationship doesn’t improve. The trust levels drop, right together with client satisfaction.
The objective of the sharing economy is not only to own consumer additional options but to supply a better, more technologically friendly, customer experience.
The goal would be to produce better feelings toward having to pay insurance premiums.
Many carriers do not realize that speed of claims resolution is just as important to consumers as professionalism and courtesy. And, with the all the innovations inside the sharing economy which are premised on mobile technology, consumers are ready for a change.
And that change is going mobile.
Customer Experience Is evolving (Finally)
Schreiber stated that he was amazed at how many large reinsurers were interested in providing support and seed money to finance the start-up. Schreiber stated, “Rather than being antagonistic, the insurance coverage industry has had a far more ‘We’ve been awaiting you’ approach.”
As with this trend increasing in popularity, more than 90% of consumers who participate in sharing economy ventures would endorse or recommend the organization or service they've recently used, based on Vision Critical.
According to Forbes, “the sharing economy excels at customer experience, and that's what inspires customer love and loyalty.”
This ” new world ” of customer services involves choice and a seamless mobile experience. Simple as that.
As the demand for easier, affordable products or services is only going to increase, it’s clear that customers are sending a loud and clear message of support-even within the insurance industry.
Customer experience in to the future will involve speed and easy service. This, once we have experienced, is premised entirely on mobile technology and innovative business models.
