Lemonade Inc. has come out with an open source insurance policy that rivals can use and all have the capacity to shape, something it touts as a first within the industry.
Dubbed Policy 2.0, the community can edit it via GitHub, and it is accessible to all of Lemonade’s competitors to use under the GNU’s Free Documentation License, Lemonade said.
GitHub is a platform for open source technology, essentially allowing anyone to view software. They can to comment on it or adopt it, a Lemonade spokesperson explained to Carrier Management via email. GNU is an operating system and broad collection of computer software, made of free software licensed via the GNU general public license.
“Anyone—competitors or clients or general public—can contribute to the policy and suggest edits,” the Lemonade spokesperson said. “Once we have a version to submit to state regulators for approval, we’ll do so. Once it’s approved, competitors are free to use the policy as well.”
Lemonade Co-Counder Shai Wininger said in prepared remarks that “as avid open source evangelists, we believe that bringing consumers and professionals together in an effort to co-create an insurance policy, will result in a better and fairer insurance product for the 21st century.” Most insurers copyright their policies.
Lemonade invited others last October to use its sales platform, following a decision to make its application programming interface or API available to developers of commerce sites, real estate apps, financial advisers, bots, IoT and smart home products. More than 400 businesses applied for early access within the first day of its offer, Lemonade said at the time.
Last December, Lemonade raised $120 million in a Series C financing designed to help it expand globally in 2018. SoftBank led the round, joined by existing investors Aleph, Allianz, General Catalyst, GV (Google Ventures), Sequoia Capital, Sound Ventures, Thrive Capital, Tusk Ventures and XL Innovate.
Lemonade is an insurance company run by artificial intelligence and behavioral economics, with a focus on digitizing the entire insurance process. As a Certified B-Corp., its underwriting profits go to nonprofits. The company takes a flat 20 percent fee under the idea that premiums belong to the insured and not the insurer. During its annual Giveback, any unclaimed money is returned, donated to causes customers care about.
Source: Lemonade