It's Time for Some Lemonade

Lemonade is the real deal in insurance disruption. It offers lessons for any innovator, as well as for any incumbent.

September 23, 2016

Irrespective of your sector of interest or whether you are in the market for insurance, take a few minutes to watch this video, Science Behind Lemonade, and the App demo. There has been so much hype about the Lemonade launch over the past months, but this is the real deal in insurance disruption. It offers lessons for any innovator, as well as any incumbent thinking it can somehow sidestep the possibilities of technology. See also: InsurTech Boom Is Reshaping Market A few specific stand-out attributes and accomplishments: According to PropertyCasualty360.com, 66% of 18- to 29-year-olds rent their homes (vs. 37% overall), and 70% do not have renters insurance. What a smart move to make renters core to the V1.0 offering. Lemonade is introducing itself to a receptive market with a large unmet need in an easy-to-understand experience. This will, no doubt, be Step One in a longer relationship as the younger generation's insurance needs become more complex. Lemonade has broken the win/lose basis of traditional insurance. When I conduct research interviews with people who own or seek to buy insurance, it's not uncommon to hear things like (literally), “when I win, they lose,” or vice versa. Aligning interests between the person buying insurance and the insurance carrier reframes the relationship, and can reinstate trust in one of the least trusted of all sectors. Lemonade takes the sector back to the original concept behind insurance as it first appeared, all the way back in the 19th century — pooling funds so members of a community can cover for each other in times of crisis. The intelligent use of UX + data + virtual agent to have a truly personalized, relevant conversation results in giving people something they need. This is as far from product-pushing as one could imagine is possible. (Note: Renowned behavioral economist Dan Ariely is part of the Lemonade team.) Lemonade is surely an exemplar that will be studied — with attempts to imitate — within the insurance sector and beyond. But be warned that simply putting lipstick on a pig won't work. The fact that Lemonade has been built from the ground up, driven by authentic purpose, will make imitation hard. See also: Be Afraid of These 4 Startups A stat shared at a conference yesterday, which you may have already heard: 70% of millennials would rather do business with Google, Facebook or Amazon than with a traditional financial institution. Insert “Lemonade” into that sentence. Kudos for a true disruptor for having the tenacity and focus to make a statement about what insurance can be. I'll be shopping as soon as the company offers coverage in my state!

Amy Radin

Amy Radin is a transformation strategist, a scholar-practitioner at Columbia University and an executive adviser.

She partners with senior executives to navigate complex organizational transformations, bringing fresh perspectives shaped by decades of experience across regulated industries and emerging technology landscapes. As a strategic adviser, keynote speaker and workshop facilitator, she helps leaders translate ambitious visions into tangible results that align with evolving stakeholder expectations.

At Columbia University's School of Professional Studies, Radin serves as a scholar-practitioner, where she designed and teaches strategic advocacy in the MS Technology Management program. This role exemplifies her commitment to bridging academic insights with practical business applications, particularly crucial as organizations navigate the complexities of Industry 5.0.

Her approach challenges traditional change management paradigms, introducing frameworks that embrace the realities of today's business environment – from AI and advanced analytics to shifting workforce dynamics. Her methodology, refined through extensive corporate leadership experience, enables executives to build the capabilities needed to drive sustainable transformation in highly regulated environments.

As a member of the Fast Company Executive Board and author of the award-winning book, "The Change Maker's Playbook: How to Seek, Seed and Scale Innovation in Any Company," Radin regularly shares insights that help leaders reimagine their approach to organizational change. Her thought leadership draws from both her scholarly work and hands-on experience implementing transformative initiatives in complex business environments.

Previously, she held senior roles at American Express, served as chief digital officer and one of the corporate world’s first chief innovation officers at Citi and was chief marketing officer at AXA (now Equitable) in the U.S.

Radin holds degrees from Wesleyan University and the Wharton School.

To explore collaboration opportunities or learn more about her work, visit her website or connect with her on LinkedIn.