NEW YORK, June 20, 2017 /PRNewswire/ -- Lemonade, the insurance company powered by artificial intelligence and behavioral economics, today released surveys indicating it has overtaken Allstate, GEICO, Farmers, Liberty Mutual, Progressive, State Farm, USAA and all other legacy insurers amongst first-time buyers of renters insurance in New York state.
The first of two Google surveys compared Lemonade's market share in renters insurance to that of other leading insurers, and pegged Lemonade's overall market share at 4.2% (E: +2.1% / -1.4%). For context: the national average market share amongst the top 10 homeowners insurance companies is 6.3%, and they've been in business, on average, for 104 years. Lemonade launched in September.
The second survey corroborated the 4% overall market share, and proceeded to break it down by when respondents first bought insurance. About 88% bought their first policy before Lemonade launched , and among them, Lemonade's share was correspondingly low (0.9%). However, among the 12% who entered the market this year, Lemonade commands a 27.6% share (E:+12.6/-9.8).
"Attaining 4% market share in a few months, in such a competitive category, is without precedent," said Peter Diamandis, founder and executive chairman of the XPRIZE Foundation, and cofounder of Singularity University. "As remarkable as this achievement is, however, it actually understates the Lemonade phenomenon. The vast majority of the 'market' bought their policy before Lemonade existed, so the more telling number is the share amongst consumers who entered the market since Lemonade did. Lemonade's top-ranking amongst first-time-buyers is a wake-up-call for the entire industry."
110 million Americans rent their home, including 75% of under 35-year-olds, making this segment one of the largest and fastest growing in the industry.
"In the two months since Google ran these surveys, our customer base has more than doubled, and we expect that acceleration to continue," said Daniel Schreiber, Lemonade CEO and cofounder. "But even if we just maintained the status quo -- within a few years our overall market share would automatically come to match our 'brand new' market share. That's what 'brand new' market share means; and that's why it's probably the single most telling metric of all."
With Lemonade, buying insurance is done through an app in no time and with no paperwork; and unlike legacy insurers, Lemonade takes a flat fee, giving back unclaimed money to causes policyholders care about. This unique 'Giveback' program derives from studies by Lemonade's Chief Behavioral Officer, Professor Dan Ariely, and earned Lemonade a B-Corp certification.
Lemonade Insurance Company is a licensed insurance carrier, offering homeowners and renters insurance powered by artificial intelligence and behavioral economics. By replacing brokers and bureaucracy with bots and machine learning, Lemonade aims for zero paperwork and instant everything. And as a Certified B-Corp, where underwriting profits go to nonprofits, Lemonade is remaking insurance as a social good, rather than a necessary evil.
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