Mon May 24 16:38:23 +0000 2021

Lemonade is built on a digital substrate - we use bots and machine learning to make insurance instant, seamless, and delightful.

This puts us at a data advantage—in fact, we collect about 100X more data than traditional insurance carriers. Here’s why that matters 👇 (1/7) https://t.co/dLqkcesVnf

A typical homeowners policy form has 20–40 fields (name, address, bday…), so traditional insurers collect 20-40 data points per user.

AI Maya asks just 13 Q's but collects over 1,600 data points, producing nuanced profiles of our users and remarkably predictive insights. (2/7)

This data helps us understand the level of risk each customer brings, which improves our underwriting, customer acquisition, and fraud detection. (3/7)

For example, when a user files a claim, they record a video on their phone and explain what happened.

Our AI carefully analyzes these videos for signs of fraud. It can pick up non-verbal cues that traditional insurers can't, since they don’t use a digital claims process. (4/7)

This ultimately helps us lower our loss ratios (aka, how much we pay out in claims vs. how much we take in), and our overall operating costs.

In Q1 2017, our loss ratio was 368% (friggin’ terrible), and in Q1 2021 it stood at 71%! (5/7)

Something else that’s friggin terrible: our mistake! That 71% reflects the removal of the impact of catastrophes in Q1 21, as noted in our Q1 shareholder letter. This impact was considerable primarily due to the devastating Texas Freeze, adding 50pts of LR https://t.co/w4DKAt8vEQ

Mon May 24 21:27:56 +0000 2021