Lemonade, which provides renters and homeowners with insurance by mobile, said it has raised $120m for its platform, in an investment round led by Japanese technology investment firm Softbank.
The funding round is expected to be finalised in Q1 2018. As well as Softbank, other investors in the round include previous backers Alphabet’s investment firm, GV, General Catalyst and Sequoia Capital.
The startup will use the money to create new coverage products next year, and to become the first consumer-facing insurer to expand internationally. The company already covers 90,000 policyholders for policies worth tens of billions of dollars, according to its Chief Executive Daniel Schreiber.
Lemonade uses machine learning and artificial intelligence in its app. It uses chatbots and other tools to make purchasing an insurance policy, filing a claim, or speaking to an expert easy. This helps to keep the company’s cost down.
Many other startups are moving towards the insurance business. Trōv, Cover, Hippo and Swyfft offer services to make insuring possessions or property easier and faster.
(Photo by (by MIKI Yoshihito via Flickr))
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