NEW YORK--(BUSINESS WIRE)--Lemonade, the insurance company powered by artificial intelligence and behavioral economics, today launched pet health insurance. Now, pet parents in 33 US states can get AI-powered, socially impactful coverage for their four-legged family members.
The new insurance product, designed exclusively for cats and dogs, joins Lemonade’s #1-rated homeowners and renters products: a hassle-free digital experience with lightning-fast claim payments, best-in-class customer service, and a donation of leftover premium going to animal-focused charities customers care about.
“Creating the dream pet health insurance from scratch has been a journey in design, customer experience, and empathy,” said Shai Wininger, COO and co-founder of Lemonade. “As pet parents ourselves, we found the existing options to be lacking, so we built a product for cats and dogs from the ground up. This means an insurance policy that’s short and easy to understand, and a user experience created with the pet, and their parent, at its core. We’re excited to make pet health insurance so affordable and accessible.”
Lemonade’s pet health insurance, starting at $12 per month, is available to both new and existing Lemonade customers, with the latter eligible for a discount of up to 10% off their monthly premium when they bundle their renters or homeowners policy with a pet policy. This is one of the only opportunities for consumers to bundle home insurance policies with pet health coverage.
“The US pet insurance market is valued at a couple of billion dollars, and with the increasing number of pet adoptions coupled with rising veterinary costs, we believe this market can grow rapidly,” said Daniel Schreiber, Lemonade CEO and co-founder. “Lemonade’s unique take on pet health insurance couldn’t be easier, or faster. This includes getting claims paid in seconds, accessing preventative care, receiving live health and wellness recommendations, and supporting animal nonprofits all from the comfort of your phone. Few insurers offer any of these features, and none offers them all.”
The Lemonade pet health insurance product will also offer customers unique coverages to add on to their policies. A Preventative and Wellness package, designed to keep the pet healthy, includes the costs of routine wellness exams and vaccines, while the Extended Accident and Illness package expands coverages surrounding a pet’s recovery, helping to cover the costs of more advanced treatments and veterinary care.
Lemonade’s new pet health insurance product is available on lemonade.com/pet and through the Lemonade mobile apps.
Lemonade offers renters, homeowners, and pet health insurance in the United States, and contents and liability insurance in Germany and the Netherlands, through its full-stack insurance carriers. Powered by artificial intelligence and behavioral economics, Lemonade set out to replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives excess premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available for most of the United States, Germany and the Netherlands, and continues to expand globally.
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our entry into the pet health insurance market, the anticipated success and affordability of our pet health insurance, as well as the efficacy and speed of our digital platform. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our history of losses and the fact that we may not achieve or maintain profitability in the future; our ability to retain and expand our customer base; the fact that the “Lemonade” brand may not become as widely known as incumbents’ brands or the brand may become tarnished; the denial of claims or our failure to accurately and timely pay claims; our ability to attain greater value from each user; the novelty of our business model and its unpredictable efficacy and susceptibility to unintended consequences; the possibility that we could be forced to modify or eliminate our Giveback, which could undermine our business model; the results of examinations by our primary state insurance regulator that could result in adverse examinations findings and necessitate remedial actions or give rise to regulatory orders requiring remedial, injunctive, or other corrective action; our limited operating history; our ability to manage our growth effectively; the impact of intense competition in the segments of the insurance industry in which we operate on our ability to attain or increase profitability; the unavailability of reinsurance at current levels and prices, which could limit our ability to write new business; our ability to renew reinsurance contracts on comparable duration and terms to those currently in effect; our exposure to counterparty risks as a result of reinsurance; the loss of personal customer information, damage to our reputation and brand, or harm to our business and operating results as a result of security incidents or real or perceived errors, failures or bugs in our systems, website or app; our actual or perceived failure to protect customer information and other data, respect customers’ privacy, or comply with data privacy and security laws and regulations; our ability to comply with extensive insurance industry regulations and the need to incur additional costs or devote additional resources to comply with changes to existing regulations; our exposure to additional regulatory requirements specific to other vertical markets that we enter, including auto, pet and life insurance, and the need to devote additional resources to comply with these regulations; and our inability to predict the lasting impacts of COVID-19 to our business in particular, and the global economy generally. These and other important factors are discussed under the caption “Risk Factors” in our final prospectus filed with the SEC on July 2, 2020 pursuant to Rule 424(b)(4) and our other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.