P2P insurance start-up backed by industry heavyweights

Lemonade, which claims to be the world's first P2P insurance company, has received backing from a number of industry heavyweights including Berkshire Hathaway’s National Indemnity,, Hiscox, Munich re, XL Catlin and two leading syndicates at Lloyd’s of London. While similar P2P ventures have been launched in Europe, these are managed by brokers rather than being fully regulated insurers with relevant security. Thus far, Lemonade has been relatively secretive about the exact nature of its offering, simply suggesting it will deliver an insurance experience that is instantaneous and not conflicted using the power of behavioural economics and the sharing economy. The New York-based start-up, which hired executives from ACE and AIG at the start of the year, plans for an initial launch in New York in the coming months.

Everest, Hiscox, Munich, Transatlantic, XL Catlin, and two of the leading syndicates at Lloyd’s of London have also agreed to reinsurer the peer-to-peer startup insurer.

(Photo credit: Elena Chochkova.)

Lemonade, set to launch in the second quarter of 2016, has announced a list of prominent companies that have agreed to reinsure the P2P insurer. The companies include Berkshire Hathaway’s National Indemnity, Everest, Hiscox, Munich, Transatlantic, XL Catlin, and two of the leading syndicates at Lloyd’s of London.

“We’re proud to support Lemonade’s creation of a fast, simple, and consumer driven insurance platform,” comments Mike McGavick, CEO, XL Catlin. “Consumer trust in the insurance system is at the heart of the insurance business, and is essential to the success of any new venture. With this collection of leading reinsurers, Lemonade’s customers will know this innovative venture is backed by some of the best and most established in the industry.”

Lemonade’s announcement included a note that it set records with its initial funding by Sequoia and Aleph, and a reference to its having attracted distinguished insurance executive veterans, including Ty Sagalow. “With Berkshire Hathaway’s National Indemnity and Lloyd’s of London backing Lemonade, the stage is now set for Lemonade’s consumer launch in the coming months,” the announcement declared.

“For insurance to provide true peace of mind you want to know your insurer is both willing and able to pay your claims.” comments Daniel Schreiber, CEO and co-founder, Lemonade. “Lemonade is the only insurer that doesn’t make money by denying claims—so no one is more willing than us. With the backing of the world’s foremost reinsurance names, no one is more able either.”