Largest American insurance startup launches in Germany


eThere is a group of consumers following similar patterns around the world. They listen to similar music, watch the same series and eat in a similar way. The American digital insurer Lemonade targets exactly this group of consumers, combines risk protection with investment in social projects and significantly accelerates its services with the help of artificial intelligence. In this way Lemonade has become the best financed Insurtech start-up in the world. With a $ 300 million financing from Japanese telecommunications company Softbank in April, the New York insurer will come to $ 480 million in market capitalization.

Philipp Krohn

Philipp Krohn

Editor in business, responsible for "People and Economy".

Since this Tuesday it is known what part of this money will be used for. Lemonade dares to enter the European market and will initially offer personal liability and household policies in Germany. The two founders Daniel Schreiber and Shai Wininger, who have already successfully established start-ups on the market several times in the past, promise their customers to be able to make a payment within ninety seconds by using digital techniques. With that promise, they sold 500,000 policies in the United States in just three years.

In Germany, they want to be successful with a "Police 2.0", which has emerged in an "open-source" process through the participation of consumers. It only has about a tenth of the size and claims to be simple, short, relevant and digital. "We selected Germany for our first international launch because it unites a very traditional insurance industry with a very forward-looking, digital consumer," co-founder Shai Wininger is quoted in a statement.

For the market entry in Germany Lemonade has won one of the largest established insurers in the market, which in turn is one of the more innovative players in digitization. As a reinsurance partner, Axa will take part of the Lemonade premiums and bear part of the risk protection. Thus, the French company admits that Lemonade competes with its German subsidiary for customers. "Rethinking insurance consistently and consistently from the customer's point of view, that is the core of our mission," quotes the statement to the CEO of Axa Germany, Alexander Vollert. "That's why more than ever, Axa promotes innovation, both from within the group itself and through partnerships."

(dayToTranslate) Shai Wininger (t) Axa Germany (t) AXA S.A. (t) ISIN_FR0000120628 (t) Softbank (t) Start-ups (t) Dollars


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