I published a post last week about a new startup insurer called 'Lemonade'. Could this type of approach help to remove legacy processes and attitudes within the industry?
The Lemonade approach involves the application of behavioural insights to try and remove what they argue is an experience that’s adversarial and distrustful. They analyse behaviours to see what brings out the best and worst in us and look to improve the behaviours of all involved. They aim to address what they see as the inherent structural problems of ‘slow to change’ insurers weighed down by legacy processes and attitudes. They also want to address the belief that insurers make money by denying claims, leading to a cycle of distrust, with huge sums leaking out of the system through a combination of inflated claims and the cost of fraud prevention measures.