Lemonade teams up with Bestow for life insurance cover
Leading insurtech Lemonade has announced it will partner with Bestow to offer Lemonade customers fast and affordable cover.
The new service, which is powered by Betow’s Protect API, is already available and accessible via Lemonade’s website and apps.
According to reports, the new service is user friendly and customer-led. Clients are guided by Lemonade’s AI-enhanced chatbot Maya, who leads them through “a conversational application.” The Protect API then underwrites customers in “real-time” and within seconds, they are informed if their application for cover has been successful.
Bestow then uses third-party data “to determine eligibility and pricing in seconds, eliminating the need for a medical exam.”
Lemonade is considered one of the most disruptive insurtechs in operation today. The popularity of its services has seen the company's in-force premium nearly double year-on-year.
A philanthropic company with many community-driven projects, its low premiums and swift service has been a refreshing addition to the insurtech sector.
Lemonade’s loss ratio has also narrowed considerably. The company also ended 2020 with over a million active customers – four years after its launch.
In December 2020, the insurtech’s earnings for Q3 revealed the company’s gross earned premium was $42.9m, a rise of $21.9m or 104% on the previous year.
The technology-savvy company is driving growth in the US and several European countries. Some analysts believe Lemonade is already differentiating itself from traditional insurance companies that have negative relationships with their customers.
By comparison, Bestow is also expanding. In 2020, the insurer formed an agreement to acquire a nationally licensed life insurer. It also expanded its client base by 400% and raised over $100m in capital.
The full-stack life insurance carrier’s strategy is to speed up growth on several product lines to support “industry-first” distribution partnerships such as Lemonade Life. Insurance products on Bestow’s platform are “competitively priced and 100% digital,” the company confirmed.
The collaboration with Bestow looks set to enhance Lemonade’s growth strategy further too. Jonathan Abelmann, Co-founder and President of Bestow, explained, “Bestow has built life insurance infrastructure for the Internet, partnering with world-class companies who provide access to vital financial products.”
He continued, “Lemonade is a visionary in using technology to transform insurance, and we couldn’t be more excited to partner with them on Lemonade Life, which is truly a one-of-a-kind experience.”
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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