Lemonade introduces pet insurance for cats and dogs
Having built a reputation in the insurance sector by offering exceptionally fast, intuitive and well-priced services underpinned by superior customer service, artificial intelligence (AI) and behavioural economics, Lemonade’s foray into pet-based policies is likely to be well-received by consumers.
Currently available in 33 US states, the company has become a darling of the insurance sector and a popular favourite with users: it has 4.9/5 on both the App store and Google Play and top ratings from price comparison websites and .
Creating perfect pet insurance
“Creating the dream pet health insurance from scratch has been a journey in design, customer experience and empathy,” said Shai Wininger, COO and Co-Founder of Lemonade.
“As pet parents ourselves, we found the existing options to be lacking, so we built a product for cats and dogs from the ground up. This means an insurance policy that’s short and easy to understand and a user experience created with the pet and their parent at its core. We’re excited to make pet health insurance so affordable and accessible.”
With prices starting at USD$12 per month (with a 10% discount available if the policyholder also has home insurance via Lemonade), customers will receive the following coverage for their animal:
Additionally, they can expect significant savings on regular medical expenditures, such as physical checkups, worming, vaccinations and more.
Finding a gap in the market
Daniel Schreiber, CEO and Co-Founder, stated that, in a valuable market which has ample room for improvement through the brand of tech-based efficiency Lemonade has become famous for, the company has spotted a great opportunity:
“The US pet insurance market is valued at a couple of billion dollars and with the increasing number of pet adoptions coupled with rising veterinary costs we believe this market can grow rapidly.
“Lemonade’s unique take on pet health insurance couldn’t be easier or faster. This includes getting claims paid in seconds, accessing preventative care, receiving live health and wellness recommendations and supporting animal non-profits, all from the comfort of your phone. Few insurers offer any of these features, and none offers them all,” he said.
TrueMotion insurtech acquired by Cambridge Mobile Telematics
One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics, was launched in 2010 and powers 65 enterprise programmes in 28 countries.
Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019.
TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.
The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers, and Progressive.
The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space.
Speaking about the acquisition, William Powers, CEO, and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.
"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.
Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.
McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”
He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."
McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”
Five reasons why telematics is in demand
- It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
- The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales, and speeds of vehicles.
- It improves driving standards and monitors driver behaviour, reducing detours and ensuring responsible driving.
- It helps fleet health and maintenance by monitoring the health of operational vehicles.
- It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.
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