Lemonade is making good on its promise to expand into Europe, with news that it is now open for business in Germany.
The New York-based startup said it has started offering contents and liability insurance in Germany, instantly, anytime and from any device. Lemonade added that customers will be able to file claims and get paid within seconds, as in the U.S. Lemonade starts operating in Germany through a partnership with AXA Germany, by way of a multi-year reinsurance agreement to share insurance-related risk.
“We chose Germany for our first international launch because it combines a very traditional insurance industry, with a very forward thinking, digital-first consumer,” Lemonade co-founder Shai Wininger said in prepared remarks. “Insurance that is instant, transparent, affordable, and mission-driven has universal appeal, which is why we look forward to launching in many more countries in the months and years to come.”
As in the U.S, Lemonade in Europe will take a flat fee for its operations and gives any remaining underwriting profit to nonprofits annually. Lemonade debuted in late 2016 offering homeowners and renters insurance in New York.
Lemonade touts its launch in Germany as being an insurance industry first, through the marketing of Policy 2.0, the name for its new insurance policy that is designed to be short, easy to understand and transparent so everyday people can understand it. The company noted that Germany is the first country to offer the policy. Policy 2.0 was first disclosed a year ago, as an open source insurance policy that rivals can use and all have the capacity to shape.
AXA Germany CEO Alexander Vollert said that his company’s cooperation with Lemonade is meant to be in tandem with AXA’s own innovation and partnership strategy.
“Our cooperation with Lemonade is strategically oriented, with reinsurance representing a first step in this direction,” Vollert said in prepared remarks.
Lemonade is licensed and supervised by the Dutch Central Bank (DNB), and has established its European headquarters in Amsterdam. The company said it chose to set up operations in the Netherlands and found a collaborative and seasoned regulatory environment, coupled with a centralized hub of global talent.
Lemonade raised $300 million in a financing round announced in April. At that time, the company said it would use the financing to expand in the United States, kick off a European launch and grow its product offering beyond home and rental insurance.