AI-powered Insurance Company secures US $300 Million Investment Funding

AI-powered Insurance Company secures US $300 Million Investment Funding

Lemonade announced on Thursday that it has raised US $300 million in Series D investment funding.

The latest investment round was led by SoftBank Group along with Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and Thrive Capital.

Founded in 2016, New York-based Lemonade is a licensed insurance company that powers their insurance offerings based on artificial intelligence and behavioral economics. The company uses bots and machine learning to help them replace traditional brokers and other bureaucracy. The company raised a total of US $480 million till date from six investment rounds.

Executive Opinion

CEO and co-founder, Lemonade, Daniel Schreiber, said, "In less than three years, Lemonade has expanded across the US, given back to dozens of charities chosen by our community, and fundamentally changed how a new generation of consumers interacts with insurance. Looking forward, we aspire to create the 21st-century incarnation of the successful insurance company: a loved global brand that can endure for generations; an organization built on a digital substrate, enabling ever faster and more efficient operations, and ever more delighted consumers."

Senior investment professional within the SoftBank Group and a Lemonade Board Member, Shu Nyatta, said, "We’ve watched Lemonade transform insurance using big data and AI, reaching half a million homes in a little over two years - a shockingly rapid pace. And we’re confident that the best is yet to come. The value Lemonade provides, together with the values baked into its model, are fast making it one of the most intriguing, differentiated and compelling brands."

Plans after Funding

Lemonade intends to use newly raised funds to expand into the US and European region. The company also looking for new product lines, notes the announcement.

Lemonade collects 100 times more data as compared to traditional insurance carriers. The use of AI and machine learning helps the company generate highly predictive data that helps them in underwriting and pricing.

The transaction is expected to close in Q2 2019, says the announcement.

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Mandar is a seasoned software professional for more than a decade. He is Cloud, AI, IoT, Blockchain and Fintech enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about the Cloud, AI, IoT, Blockchain and Fintech and the effects they will have economically and socially in the future.

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