NEW YORK, Jan. 5, 2016 /PRNewswire/ -- Lemonade, the insurance company powered by artificial intelligence and behavioral economics, today announced it has set a world record for the speed and ease of paying a claim: 3 seconds and zero paperwork.
At seven seconds past 5:47pm on December 23, 2016, Brandon Pham, a Lemonade customer, hit 'Submit' on a claim for a $979 Canada Goose Langford Parka. By ten seconds past the minute, A.I. Jim, Lemonade's claims bot, had reviewed the claim, cross referenced it with the policy, ran 18 anti-fraud algorithms on it, approved the claim, sent wiring instructions to the bank, and informed Brandon the claim was closed.
"Since no international standards exist for the payment of insurance claims, the Guinness Book of World Records was unable to enter Lemonade as the World Record Holder," said Daniel Schreiber, CEO and cofounder, Lemonade. "Yet from all we can gather, in the 3,000 year history of insurance nothing like this has ever happened in 3 seconds. So we're claiming the title. The number to beat is now 3 seconds, and we hope others will rise to the challenge."
In most states insurance companies are bound to payout in 30-45 days. Concluding the cycle in 3 seconds is without precedent.
"I was shocked by how easy the process has been with Lemonade," said Brandon Pharm, whose claim set the record. "I signed up for Lemonade because it was no frills, the most affordable option, and took no more than two minutes on my couch. I try to avoid making claims but the process with Lemonade was so simple. I already assumed there was no way that I'd recover my losses: other insurers either pile paperwork or deduct tons of charges that I don't understand. But this time was different. I signed a honesty pledge, answered a few questions, and Lemonade reimbursed me in a matter of seconds! Their service is amazing and I am so happy that I signed up!"
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 promises 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.