Lemonade divests EBS arm, days after closing Metromile deal

US insurtech unicorn Lemonade has divested the enterprise business solutions (EBS) arm of pay-per-mile auto insurtech Metromile, which it recently acquired

US insurtech unicorn Lemonade has divested the enterprise business solutions (EBS) arm of recently acquired Metromile to digital insurance platform EIS, just days after completing its acquisition of the auto insurtech.

EBS is the SaaS claims automation and fraud detection platform that Metromile licensed to large insurance carriers. It came as part of the acquisition of Metromile, which Lemonade closed at the end of last week. The latest divestiture shows Lemonade’s intent to focus on the areas of Metromile’s business that add the most value, and spin off those parts that don’t.

“We launched Lemonade Car a few months ago, and believe it’s the most delightful product on the market,” Lemonade Co-founder and Co-CEO Shai Wininger said last week, when the completion of the Metromile deal was announced. “We also believe auto insurance is challenging for newcomers and disadvantaged by a lack of data, which is why we bought Metromile.

“For 10 years, Metromile’s intricate sensors monitored billions of miles of driving, while their AI cross-referenced this data with hundreds of thousands of claims, to accurately score each tap of the brake and turn of the wheel. We believe that adding these models into the Lemonade Car platform will make the most delightful car insurance also the most competitive, precise, and fair.”

Clearly, Lemonade does not see Metromile’s EBS business as part of that synergy.

Following the closure of the Metromile acquisition, Lemonade also announced that 20% of staff at Metromile would not be retained. The layoffs amount to about 60 employees. Metromile CFO Regi Vangalil and SVP Communications Debra Jack are among the highest-profile departures.

Share

Featured Articles

Milliman Arius: Reserve Analysis with an End-to-End Solution

Insurers face risks and errors with current reserve analysis methods – and Arius provides the answer

Allstate: BCG Partner Harnesses Gen AI to Transform CX

Allstate and BCG are harnessing Gen AI via a new model to better understand customer needs and improve overall experiences within the insurance sector

Comarch Diagnostic Point: Next Gen European Health Insurance

Healthtech provider Comarch introduces Comarch Diagnostic Point, set to improve health insurance across European markets

MoneyLIVE Summit 2024: Qover Talks Embedded Insurance

Insurtech

Ansel raises US$20m to combat financial healthcare barriers

Partner Ecosystems

Hastings Direct: Levelling up with Snowflake

Insurtech