Lemonade on the future of insurance technology

AI and machine learning form the backbone of Lemonade’s products, which are designed to help customers buy policies and portfolios more efficiently.

“Machine learning has led to new technologies that have created new opportunities [for] the world that existed before,” said Dickman. “The challenge the insurance industry has faced to date has not been to collect or store data but to analyze and generate intelligence that will help companies provide their customers with better and better service.”

Lemonade’s path has taken off, from raising nearly $500 million in venture capital in multiple rounds to a 2020 IPO that pulled in $308 million, and beyond. But like insurtech and many other technology companies, its value has fallen since then as investors tightened expectations. Lemonade took a hit in 2021 due to disasters including Winter Storm Uri and the California wildfires, although it has generated significant revenue, and its customer base reached 1.4 million last year – an increase of 400,000 people. At the same time, Lemonade’s annual returns to non-profit nominees fell this year, reflecting a share of last year’s performance.

Growing and changing the game

Dickman joined Lemonade in February 2019, helping to create jobs as the company expanded, through its launch in the public markets, and its U.S. pet, life and auto insurance coverage for homeowners and homeowners insurance. in a play. During that time, Lemonade has also expanded into Germany, France and the Netherlands, which has given Dickman and his team more opportunities to lead the growth of the technology.

“This was very exciting for the engineering team, as we were able to go from two product-related teams – or teams as we call them – to over 200 engineers worldwide,” said Dickman.

Lemonade, which has been “native” since its inception, relies on a wide variety of software and languages ​​to support its platform and services.

Initially, Dickman said, Lemonade launched its first product on the so-called Ruby monolith – a single program in which the user interface and the data acquisition process are combined in one program from one platform. Lemonade’s auto and pet insurance spin-offs have fueled the transition to microservices written in Node and Typescript, though Dickman said Lemonade continues to rewrite older technologies into a uniform.

The company also relies on Lokalise – a cloud-based location management system that can provide services in multiple languages, a technology that Dickman spoke highly of.

“When using Lokalise, our development process is user-friendly and flexible, which gives our developers a unique advantage,” said Dickman.

In addition, Lemonade relies on branches and APIs, which allow the company to manage content within development in a more manageable way, he said.

In-house ingredients also help support Lemonade’s growth and success.

“We created an in-house brain that works and provides services in the design and helps developers manage their work,” he said.

Use this, not that

Data and machine learning are critical to Lemonade and insurance as a whole, Dickman said.

“At Lemonade in particular, data and machine learning are heavily integrated into our products and internal processes,” he said. “Communicating with our customers on our platform generates more information, which in turn improves communication with our customers on our platform.”

Some of the new features include Lemonade’s AI Maya bot that focuses on “gameplay and customer experience.” Sells Lemonade orders and customizes them, makes coats and helps with billing. There’s AI Jim, a self-proclaimed bot that handles the “first loss of information” for most of Lemonade’s content and often manages all claims without human intervention.

Insurers always have to adapt to new technologies that can improve their products and services, Dickman said, but they need to think about the process.

“Any technology can be risky, but the question is at what cost,” Dickman said. “To replace technology you have to do it slowly.”

That’s what Lemonade did when it launched pet insurance.

“When we made the decision to start pet insurance, we decided to take a chance and build in a new stack and paradigm, and it worked amazingly,” said Dickman. “We also know it could have failed, but it’s a chance we took.”

When it comes to technology that the insurance industry needs and is still largely underutilized, Dickman puts his vote behind a number of technologies that play on Lemonade.

“Combining automation and AI with the rapid and efficient analysis of large volumes of data will lead to significant technological changes for the insurance industry,” he said.

Dickman added that creating such a combo would help insurers meet requirements and standards, among other benefits.