InsurTech Innovation Updates From Lemonade and Roost

September 27, 2017

Lemonade has come out with a new product that offers new and existing members a “zero deductible” upgrade, letting them make up to two claims annually with no deductible payments or rate hikes.

Dubbed Zero Deductible, the product is meant to mark Lemonade’s first anniversary. Lemonade is an InsurTech peer-to-peer startup that sells renter or homeowners insurance via its website or an app, supported by artificial intelligence and behavioral economics. It launched in 2016 and now does business in New York, California, New Jersey, Illinois and Texas. (Launches are expected soon in 15 more states, the fledgling insurer said.)

New users can choose Zero deductible while getting a policy, by picking the Zero deductible option while purchasing a policy. Existing users can upgrade instantly to Zero Deductible through Live Policy, a coverage option that lets consumers update their policies themselves in real time on the web (Agents and brokers typically handle this.)

Lemonade describes Zero Deductible as moving from “rethinking the fundamental business model of insurance and its customer experience, to tackling the underlying policy, and ensuring it is aligned with consumers’ wishes.”

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Roost, a developer of home telematics for property insurance carriers, will partner with Franklin Mutual Insurance in a bit to drive insurer enrollment, customer loyalty and engagement.

The deal calls for each Franklin Mutual Insurance home insurance policyholder to be eligible for a free Roost Smart Water Leak and Freeze Detector.

Roost’s Smart Water Leak and Freeze Detector senses water leaks as well as humidity and freezing temperature situations. Once that happens, it delivers smart phone alerts. With this partnership, those alerts will be sent via the Roost/Franklin Mutual Insurance App, with a goal of helping to minimize water damage and loss.

Roost notes that the system – a smart Wi-Fi enabled detector, can be set up in less than 5 minutes and can be easily placed in locations around the home most prone to water leaks such as sinks, hot water heaters, toilets and various appliance.

Franklin Mutual, in turn, gains an edge by being able to offer Roost telematics technology options that can help mitigate policyholders’ claims cost and the hassle of water leak claims.

Sources: Lemonade and Roost