I keep being asked about Lemonade’s world record three-second claims settlement time. I think the answer is the approach requires less fizz, more zest.

As someone at the helm of a business that is already providing a cutting edge entirely digital claims settlement model for leading insurers, industry insiders are intrigued by my viewpoint.  Which is great.

While I can give full marks to Lemonade for the fizz – or the hype even – ultimately their claims settlement model is not ideal.

In my view, three-seconds is way too long to settle a claim!  What kept you?

Our technology – a customer-friendly self-service model (which 9 out of 10 customers choose to use, when offered this route versus the ‘classic’ claims settlement route) – where the customer uploads images, video, text in support of their claim. 

Often, our technology resolves the claim before the reports are made hence my claim that three-seconds is too long.

Consider a fairly unlikely scenario, with an opportunistic element.  In the case of a property claim, where say a customer claims damage to multiple items of sanitary ware, using our technology the customer can report the claim digitally, uploading images via their smartphone or laptop to our tech platform.  However, the need to provide verification this way, might deter the customer from reporting.  Not because the digital tech is difficult.  In fact, it’s easier than ordering from Amazon.  It’s simply because the damage either didn’t happen or, didn’t happen in the way the customer claims.

Our insurance clients find that, in over 30 percent of property claim reports, the claim is withdrawn at the point when the insurer asks for the damage to be shown by video. 

AI Jim or even ‘real Jim’ will not be able to allow less than genuine customers to self-select themselves out of a process that builds in appropriate measures of control but not at the expense of genuine customers.

Our challenge to Lemonade’s Daniel Schreiber - and we love a challenge BTW - is to settle the vast majority of claims in all types of loss situations and complexities in less than 90 minutes, not just a lost coat which, let’s face it, most insurers would settle at FNOL in a short space of time anyhow.  This is something our technology facilitates regularly.

While the fizz is great, keeping the effervescence going takes a great deal more.  Lemonade needs to be aware that technology is already available to insurers throughout the world that offers every benefit to the claims process, without completely disrupting the business or its existing IT estate.  So too, this can outperform AI and real Jim in more complex claims and not just in personal lines but commercial lines as well. 

So our ability to reach resolution before the claim is made beats the three-second claims settlement time hands down.  No question.  The record was lost before it started.  Sorry.  To paraphrase a well-known UK insurer – can your insurance do that? 

I’m not rubbing it in.  Honest.  But we hold the genuine record for the fastest claim settled, where a customer home visit took place using our digital home service agents….26 minutes from report to claim settlement.  Customer notification, digital agent instructed, visit arranged, visit completed with comprehensive details documented, including video/imagery, claim amount agreed, funds released. 


Paul Stanley is CEO, 360Globalnet, a leading provider of digital products and services to insurers