Page 23 - May2017

Are Disruptors Turning the Industry

Disruption [dis-ruhp-shuh n] UPSIDE DOWN?
Noun 1. forcible separation or division into parts.
2. a disrupted condition: After the coup, the country was in disruption.
3. Business. a radical change in an industry, business strategy, etc., especially involving the By Deann French
introduction of a new product or service thatcreates a new market: Globalization and the rapid
advance of technology are major cause’s of business disruption.

Group. According to Jergler’s piece Keating stated, “If we today announced it has been licensed as a full-stack
survive the next five to 10 years and improve the way we insurance carrier by the State of Illinois. Renters in
do things, we can be well-positioned into the future.” the state can now buy a Lemonade policy in seconds
using the Lemonade app or by visiting lemonade.com.
However, he added that Homeowner’s policies will be available in the state soon.
TO COMPETE WITH New York City-based Lemonade is an artificial intelligence-
THE DISRUPTORS powered app. Currently the site offers renters’ insurance
INDEPENDENT AGENCIES in Illinois, with homeowner and condo insurance to come
soon. Lemonade is looking to reach 97 percent of the US
MUST EMBRACE population by the end of 2017.
TECHNOLOGY. Would-be disruptor’s prey on the most basic of insurance
buyer desires: cheap, fast and easy,” said Ryan Hanley,
SVP Marketing or TrustedChoice.com. (see page 24) And
The need for the insurance industry to fully embrace Lemonade is filling all the desired check boxes:
technology was a theme reiterated throughout that
conference. In fact, the article went on to share facts 1. Renters insurance starts at $5 per month, while
presented by Michael Jans, founder and CEO of Agency homeowners insurance starts at $25 per month.
Revolution, CHECK
2. Lightning quick processing for simple claims (one
“Jans, produced a dizzying array of statistics to drive claim was processed and paid in three seconds)
home his point about the need for agencies to be on CHECK
board with investing in better technology: 3. The entire process is done via mobile app or internet.
CHECK
• 81 percent of consumers research online before
shopping Plus Lemonade comes with the ever popular social giving
• 65 percent of consumers read between four and 52 component. Essentially any unused claim portion is
online reviews donated to the charity of choice for the user.
• 98 percent of people check email at least once a day
• 39 percent of people check their email 10 times or This is called “GiveBack” BONUS
more a day
• 87 percent of people say they check their email As reported in a recent Forbes piece, Lemonade is already
between midnight and 5 a.m. at least once a week poaching customers from industry giants. “According
• The average person touches, taps or swipes their to their website, 19 percent of their users switched from
smartphones roughly 2,617 times in a day Allstate and 16 percent of users switched from State Farm.
And it’s particularly enticing to young consumers: 80
“‘In our business, if we want to reach people and touch percent of the first 2,000 policies sold were to first-time
people, we have to be where they are,” Jans said.’” buyers.”

Where they are is online and on their smart phones and And Lemonade is only one of many new startups looking
insuretech startups are experts at finding more ways to to disrupt the status quo within the industry. Other names
reach consumers and make it more convenient for them to you may recognize include Zenefits, Attune, Coverhound,
buy insurance online. Hippo and Insurify to name a few. And experts agree we
haven’t heard the last from Google.
When Life Hands You Lemons….
As a matter of fact, Jergle reported that Jans did some
Timeline - April 4, 2017 (seems like a popular time of year research to see how many insuretech-themed conferences
for big insurance industry announcements) Lemonade are planned for the near future. “I counted 20,” Jans said.
announced they were entering the Illinois market. “It’s an industry and it’s right next to us and it will disrupt
us.”
Lemonade, the insurance company powered by
artificial intelligence and behavioural economics, MORE TO COME

may 2017 insight 23