AI-powered insurtech Lemonade raises $300m in Series D round

Lemonade, an artificial intelligence (AI) powered insurance startup, has raised $300m in a Series D funding round led by Japanese conglomerate SoftBank Group. These funds are expected to help in Lemonade’s US and European expansion this year, and also in exploring new product lines.

Licensed as a full-stack property and casualty insurance carrier, the company started providing homeowners and renters insurance in New York in late 2016. As of now, the company is offering its insurance services, powered by artificial intelligence and behavioral economics, for a majority of the US population.

Lemonade, which is engaged in digitizing the entire insurance process, replaces the concept of brokers and bureaucracy through bots and machine learning, thereby aiming at zero paperwork and making everything instant.

In contrast to the normal insurance model, the insurtech company takes a fixed percentage as a flat fee to remove the conflict between paying claims and making a profit. It is said to donate a part of unclaimed premium amount to nonprofits during its yearly ‘Giveback.’

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