Lemonade is a new type of insurance carrier that takes inspiration from peer lending services.
Dan Ariely is a professor of professor at Duke University who has a hand in developing the New York-based insurance start-up and will serve as its chief behavioral officer. Ariely says: "If you tried to create a system to bring out the worst in humans, it would look a lot like the insurance of today." Lemonade will separate itself by pairing people who need insurance with investors who have enough capital to back them.
After securing $13 million in seed funding, Lemonade's new P2P insurance service is set to launch this year, alongside a few other newcomers looking to break tradition and appeal to younger target audiences who may not otherwise insuring themselves or their assets.