Lemonade has started selling renters insurance in France, the third European country into which it has expanded so far.
Residents of France can now purchase the coverage using any device, at any time. They can also file claims designed to be paid in seconds through the Lemonade app, according to the New York-based InsurTech. The news follows Lemonade’s jump into the Netherlands to sell contents and liability insurance in April. Lemonade began to sell contents and liability coverage in Germany in June 2019. Further European expansion is planned, according to the company’s website.
Lemonade CEO and co-founder Daniel Schreiber noted that France often legally requires home insurance, and said this presents a good opportunity for Lemonade to break into the market.
“Home insurance is often legally required in France, which makes it a compelling opportunity for Lemonade’s next European country launch,” Schreiber said in prepared remarks. “While the French insurance market is one of the most developed globally, we believe that Lemonade’s unique mix of value, values and technology will stand out to the French consumer, offering the ability to get fast, personalized and mission-driven insurance, with a few taps.”
Lemonade’s renters policy, which can be stopped and started at any time through the app, will start at just 4 € a month, and include features such as an optional coverage to cover against theft both in and outside of your home, worldwide.
In Europe, Lemonade is licensed and supervised by the Dutch Central Bank (DNB) and has its European headquarters in Amsterdam.
Lemonade debuted in the U.S. in 2016, where it offers renters, homeowners and pet health insurance. It keeps a flat fee for its operations and gives any unused remaining money to nonprofits as part of its annual Giveback program. In the U.S., Lemonade has said it will also start selling life insurance within a few months, with auto insurance also on the horizon.
The company raised $308 million in its July 2020 initial public offering, with a stock price closing after the first day of trading at $69.41. Lemonade traded above $91.41 late afternoon on Dec. 7, reflecting a price surge in recent weeks.
Lemonade lost $30.9 million in its 2020 third quarter versus $31.1 million the year before. It is offering 2020 full-year guidance projecting an approximately $100 million adjusted EBITDA net loss, and in-force premium of about $200 million.