Lemonade IPO demonstrates need for a shift in market direction in insurance

Tim Hardcastle CEO and founder of INSTANDA comments on Lemonade IPO and its impact on the insurance market

“Last month, Willis Towers Watson’s Quarterly Insurtech Briefing Q1 2020 suggested that insurtech funding dropped by more than half during Q1. This is unsurprising, given the current climate. But the news of Lemonade’s IPO shows that the underlying message for the insurance industry is clear. The financial markets believe there are better ways to deliver insurance products and services.

“Lemonade embraces technology to bring more flexibility to the industry, delivering diversified products tailored to individual needs. Incumbents, meanwhile, have traditionally been held back by clunky legacy IT systems that often cause delay in responding to customer needs. The positive news, is that there are a number of flexible digital solutions out there for insurers, to enable them to embrace this new way of delivering appealing products.

“INSTANDA advocates that every insurer can and should have the flexibility of Lemonade, to deliver a seamless customer experience and the products that they know consumers need. Lemonade’s forthcoming IPO is therefore a strong market signal to insurers globally to the value of insurance, when it embraces flexibility, agility and operational efficiency.”