It takes a one-two punch to make insurance fair

It takes a one-two punch to make insurance fair

I’ve previously argued that AI can vanquish bias in insurance, and so it can. But while machine learning can help ensure equality, it cannot ensure equity. It might even make it worse.

Equality ≠ Equity

‘Equality’ and ‘equity’ are often thought of as synonyms, but they are distinct. While both promote fairness, equality is about treating everyone the same regardless of their circumstance, while equity is about treating people differently out of regard for their circumstance.

With the pandemic now killing at a rate of 1 million people every 90 days, vaccine hesitancy must be overcome

“I don’t know about you people,” declared Gavin Belson, the spoof Silicon Valley CEO from the hit series of the same name, “but I don’t want to live in a world where someone else makes the world a better place, better than we do!”

Most of the time CEOs presuming to ‘make the world a better place’ deserve to be parodied, yet in 2021 corporations can literally do just that, and they can do it without breaking the bank, indeed without breaking a sweat.

The hard work has already been done by the researchers, manufacturers and regulators who rolled up…

And Why Extended Adolescence Is Not Good for Tech Companies

Lemonade went public last month, a short five years after its founding. Time was when it would have been obvious that a company at Lemonade’s age and stage would go public, and many of the most iconic tech companies — like Apple, Microsoft, and Amazon — were roughly our size when they IPO’d.

But it’s become trendy to go public ever later.

Twenty years ago, the median age of a company going public was four; ten years later it was fourteen.

This change is also reflected in the ever larger revenues of tech companies at the time of their IPO:

Shai & I

Shai is a Gift That Keeps on Giving!

Over my career I’ve met with some legendary leaders — people like Jeff Bezos, Steve Jobs, Jack Welch and Eric Schmidt. Admittedly, my time with each was fleeting, but based on all that I know I’d say this:

If I could choose between any of them and Shai Wininger as my cofounder, I’d choose Shai every day of the week.

Our IPO put this into sharp relief.

Going public is an exercise in introspection. It involves months of cataloguing everything the company has built, committing it to writing, having an army of lawyers check and double check every word, number…

‘Contact Tracing’ Can Be A Game Changer, If Only Governments Would Step Back, And Multinationals Would Step Up.

“I don’t know about you people,” declared Gavin Belson, the spoof Silicon Valley CEO from the hit series of the same name, “but I don’t want to live in a world where someone else makes the world a better place, better than we do!”

This parody is now playing out for real with Coronavirus ‘contact tracing’ tech — only there’s nothing funny about it this time.

Contact tracing apps are meant to notify people when someone they were in close quarters with…

Deaths from unintended consequences are hard to count, but they must still count

2,977 people died in the attacks of September 11, 2001, and for a long time it was all the world could talk about. With the images of the exploding planes looming large, many Americans thought it prudent to switch their planned air travel for road trips. Their response was understandable, but their calculation was off: mile for mile, traveling by car is about 100 times deadlier than flying. It has been estimated that some 2,300 people died in car crashes attributable to this single-minded focus on not dying on a plane.

What lesson might we learn as we embrace a…

Insurance companies shouldn’t fund the very harms they’re meant to protect against

You wouldn’t think your insurance company would invest your premiums in businesses that increase the catastrophes you’re paying them to protect you against.

Think again.

A recent study published in the scientific journal Climatic Change showed that emissions from products and processes of 90 fossil fuel companies — the very companies insurers invest in — caused about 50% of the rise in global temperatures. That warming powered wildfires, hurricanes, and other climate-related catastrophes — the very things insurers (like us) insure against.

Last year saw a new record for devastation by hurricanes and wildfires — and there’s no reason to…

Why we’re throwing out the traditional policy and creating Policy 2.0!

Open to change

“Every act of creation is first an act of destruction” — Pablo Picasso

To create an unconflicted insurance company you have to rethink the very business model of insurance; to make it transparent you have to take a bulldozer to its foundational document: the Policy.

Lemonade is committed to both.

In late 2016 we launched Lemonade with a novel business model, but sensed that razing the ‘industry standard’ insurance policy was more than our regulators and reinsurers could stomach.

That was then. This is now.

Transparency is the best policy

“A lack of transparency results in distrust and a deep sense of insecurity” — Dalai…

Digitization enables precision medicine — why not precision underwriting?

Digital you

Humanity is being digitized, and medicine will never be the same again. A spittle now gets you 1.5GB of genomic data, while your $80 watch captures your heart, exercise and sleep patterns 24/7.

Annual checkups suddenly seem quaint.

Humanity in hi-def looks qualitatively different. A pill, once thought to be ‘20% effective’, is understood to be 100% effective for people with a certain genotype (found in 20% of the population), and useless for everyone else. …

The highlights, and lowlights, of our first year in market

In late 2016 we were nervous as hell. We were about to launch a challenge to a $3 trillion industry, and it was anyone’s guess how we’d be received.

Within hours, feedback from users and influencers allayed our worst fears.

Daniel Schreiber

CEO & Co-founder of Lemonade

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