Allianz invests in AI-powered insurance firm Lemonade
German insurance giant Allianz has made an undisclosed investment in Lemonade Insurance, the insurance company powered by artificial intelligence (AI) and behavioral economics.
Headquartered in New York, Lemonade provides homeowners and renters insurance which are claimed to be powered by AI and behavioral economics.
Lemonade has introduced bots and machine learning in the place of insurance brokers and bureaucracy while committing to virtually no paperwork and promising instant solutions.
Allianz chief digital officer Solmaz Altin said: "Allianz is committed to staying at the cutting edge of insurance.
"We follow the insurtech space closely and globally, and have seen nothing to match Lemonade in terms of technology, user experience and business model innovation. We're thrilled to become a stakeholder in Lemonade, and will do what we can to accelerate their rapid expansion throughout the US and beyond."
Earlier this month, Lemonade was granted license to operate as a full-stack insurance carrier in the US state of Illinois. Using its app or on its website, renters in Illinois can purchase Lemonade’s insurance policy in a matter of seconds.
The insurance carrier has plans to launch homeowners’ policies on its platforms in the coming days.
Lemonade cofounder and CEO Daniel Schreiber said: "Allianz is rightly regarded as one of the most forward thinking companies in our industry.
"Despite their unparalleled reach and resources, Allianz has no competitive business with Lemonade, and we look forward to deepening our relationship with them in the years to come."
Buying an insurance policy with Lemonade is done online without any paperwork involved. The new insurer is looking to expand nationwide having applied for licenses in 47 states in November 2016.
Image: Allianz Treptowers in Berlin, Germany. Photo: courtesy of Allianz.