Lemonade’s Giveback Grows 3X in 2018
Jul. 10, 2018
NEW YORK--(BUSINESS WIRE)--Jul 10, 2018--Lemonade, the insurance company powered by artificial intelligence and behavioral economics, announced its annual Giveback channeled $162,135 to 15 nonprofit organizations.
The impact of this year’s Giveback includes 23,603 meals delivered via Citymeals on Wheels and Robin Hood, 3,603 natural disaster recovery kits with the American Red Cross, training for 2,300 STEM teachers with Teach For America, a water project in Cambodia bringing safe, clean drinking water to a community in need with charity: water, and a home for the Castaneda family in El Salvador via New Story.
"We're grateful for Lemonade's ongoing generosity and I'm personally inspired by their unconventional approach to turn a necessary evil into a social good,” said Brett Hagler, CEO and cofounder of New Story, a nonprofit that builds homes in the developing world. “Our team resonates with Lemonade because similar to how they’re modernizing insurance, our team is passionate about modernizing old traditional methods in our industry so that we can impact more lives faster and better."
In the Lemonade model, members choose a Giveback cause when they sign up. People choosing the same cause form an invisible ‘cohort.’ Behind the scenes, each cohort’s premiums are used to pay their claims, and Lemonade then gives back any leftover money (up to 40%) to the cause by which the cohort is defined.
“The wonderful thing about Giveback is that when members of one cohort have a good year, we don’t use their leftover money to subsidize those that had a bad one,” said Daniel Schreiber, Lemonade CEO and cofounder. “Each cohort stands on its own, and their underwriting profits go to their nonprofit. That’s how our community continues to be so impactful - it’s built into the Lemonade business model.”
The first annual Lemonade Giveback in 2017 channeled $53,174 to 14 different charities. At the time, Lemonade’s customer base was considerably smaller, and today’s Giveback illustrates how the Giveback grows as Lemonade does.
“Giveback is like a social contract among our community, and the size and allocation of the Giveback is determined not by our big profits or big hearts, but by the good fortune and good behavior of our members,” said Prof. Dan Ariely, Chief Behavioral Officer of Lemonade. “As we see it, ‘it’s not our money’. It’s money our community has entrusted to us, first and foremost to help our members recover from unfortunate events in their lives, and secondly to help the less fortunate in our broader community.”
Learn more about the Lemonade Giveback here.
Lemonade Insurance Company is a licensed insurance carrier, offering homeowners and renters insurance powered by artificial intelligence and behavioral economics. By replacing brokers and bureaucracy with bots and machine learning, Lemonade aims for zero paperwork and instant everything. As a Certified B-Corp, where underwriting profits go to nonprofits, Lemonade is remaking insurance as a social good, rather than a necessary evil. Lemonade is currently available for most of the United States and looks to expand globally.
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PUB: 07/10/2018 08:00 AM/DISC: 07/10/2018 08:01 AM