A.M. BestTV: Want Better Relationships With Insureds? Change the Business Model, Say Lemonade Executives

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this episode of ^A.M.BestTV, Daniel Schreiber, chief executive officer, and Dan Ariely, chief behavior officer, Lemonade Inc., said they have created a system that favors the economic interests of policyholders whether or not they file claims. Click on http://www.ambest.com/v.asp?v=schreiberariely1018 to view the entire program.

Schreiber highlighted how his company, which uses an artificial intelligence chatbot to sell insurance and handle claims, is built on the business model of trust.

“This company is not a charity,” said Schreiber. “Lemonade Inc. is a profit-maximizing organization. We believe the way to build a loveable brand that people will be loyal too and behave well in to reduce fraud is by building trust. We are trying to solve the business problem of how do you build an insurance company that is trusting and trustworthy that people want to not only be a part of, but spread the word about.”

Ariely spoke about the social good of insurance.

“A lot of people in the insurance industry are concerned about pricing; however, we are also concerned about prevention,” he said. “For example, if someone has a bad car accident, we can pay them for the damage to the car, but we cannot compensate that person for the human misery. Therefore, if we can obtain information from that person, which will help them to identify weak points in their life and how to do things differently, that information will also create a pricing difference that will benefit them and us.”

Schreiber and Ariely spoke recently to ^A.M.BestTV at the Insuretech Connect conference in Las Vegas, NV. ^A.M.BestTV regularly covers insurance-related conferences. For the most-recent conference coverage, please visit the following playlists:

American Council of Life Insurers Conference (Washington, D.C.): http://www.ambest.tv/acli18.
Bermuda ILS Convergence (Hamilton, Bermuda): http://www.ambest.tv/convergence18.
InsureTech Connect Conference: http://www.ambest.tv/insuretech18.
National Association of Mutual Insurance Companies Conference (San Antonio, TX): http://www.ambest.tv/namic18.
Wholesale and Specialty Insurance Association Meeting (Atlanta, GA): http://www.ambest.tv/wsia18.
Rendez-Vous de Septembre Conference (Monte Carlo, Monaco): http://www.ambest.tv/rvs18.

^A.M.BestTV covers exclusive A.M. Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.