Israel-founded insurance coverage expertise firm Lemonade introduced Tuesday that it had reached a definitive settlement to buy the U.S. digital insurance coverage platform MetroMile to bolster its new auto insurance coverage providing, a product the corporate introduced simply final week.

The acquisition – Lemonade’s first – pertains to a stock-only transaction with an fairness worth of roughly $ 500 million, or simply over $ 200 million in money. Beneath the phrases of the transaction, Metromile shareholders will obtain Lemonade frequent inventory at a ratio of 19: 1.

San Francisco-based MetroMile, based in 2011, is an auto insurance coverage firm that makes use of information science and AI to supply customized insurance coverage insurance policies for miles. MetroMile additionally licenses its expertise platform to insurance coverage firms world wide.

Lemonade made its first foray into the almost $ 800 billion international auto insurance coverage market final week when it unveiled Lemonade Automotive, a brand new service that makes use of telematics – a discipline that mixes telecommunications and computing – to measure what number of motorists and the way assured they’re in offering higher tariffs for secure and low-mileage drivers, the corporate mentioned. The app additionally affords real-time crash detection, entry to roadside help across the clock and the power to dispatch emergency companies.

Hybrid and electrical automobile (EV) drivers obtain particular reductions on their auto insurance coverage, as do present customers of Lemonade’s different insurance coverage choices.

Join the Startup Day by day
and by no means miss Israel’s high tech tales

By registering, you comply with the phrases and circumstances

Lemonade Co-Founder and CEO Daniel Schreiber mentioned in a press release that MetroMile has “come this fashion billions of occasions and their proprietary information and machine studying algorithms can overwhelm us probably the most time-consuming and dear elements of the journey.” In an enormous and aggressive market like auto insurance coverage, in the present day’s deal is large worth for our prospects and shareholders. “

Dan Preston, CEO of MetroMile, mentioned, “The mixture with Lemonade Automotive will create probably the most customer-centric, fairest and most inexpensive auto insurance coverage and is a superb consequence for Metromile shareholders who will profit as shareholders within the mixed firm. It additionally signifies that owners, renters and drivers can now all meet their insurance coverage wants with a single firm that basically cares about their finest pursuits. “

An illustrative picture of a driver on the open highway. (anyaberkut, iStock from Getty Photos)

Lemonade has been making waves within the conventional insurance coverage business since 2015 when it was based in Tel Aviv by Schreiber and Shai Wininger, additionally co-founders of Fiverr. The corporate makes use of applied sciences like synthetic intelligence and chatbots, in addition to behavioral economics, to supply inexpensive owners, renters, life and pet insurance coverage within the US via a cellular app. Some affords are additionally obtainable in Germany, the Netherlands and France.

Lemonade claims its simplified claims course of and its tariffs – it affords rental insurance coverage from $ 5 per thirty days and home-owner insurance coverage from $ 25 per thirty days – is massively fashionable with youthful customers. It additionally runs a charity ingredient referred to as the GiveBack program, the place its customers choose a nonprofit that they care about and every year swimming pools and donates unclaimed funds from policyholders who’ve chosen the identical trigger . This system was featured in TIME journal’s 100 finest innovations in 2019.

With Lemonade Automotive, the corporate goals to supply higher costs based mostly on how customers drive.

“The target market is anybody who’s underserved by the present auto insurance coverage business,” Wininger advised the Occasions of Israel by way of electronic mail final week. “By pricing based mostly on how a lot and the way safely you drive, Lemonade Automotive will be capable to provide higher costs – and fairer costs – than they presently are (broad-bar proxies like credit score, age, gender – all Parameters that don’t point out how a lot and the way safely you drive). We’re additionally our present Lemonade buyer base – owners, renters, pet house owners, and many others. who at the moment are bundling their insurance coverage with Automotive, getting reductions and all of their insurance coverage wants in a single place. “

The lemonade app. (Courtesy)

Lemonade Automotive is the corporate’s “largest challenge of all time,” mentioned Wininger. “We now have arrange complete groups to deal with towing companies, repairs, bodywork and the assist for the 24/7 breakdown and emergency companies that we now provide. Providing a first-class motorized vehicle claims expertise means being one hundred pc there to your prospects, with surprisingly quick service and a whole lot of empathy. “

The Lemonade Automotive reclamation course of will enable customers to rapidly file claims, entry towing companies, and in an emergency, cost EV batteries and monitor repairs, the corporate mentioned.

Lemonade is headquartered in New York and has workplaces in Tel Aviv and Amsterdam. The corporate employs virtually 1,000 folks.

Lemonade had raised almost $ 500 million from main traders similar to SoftBank – its largest financier – Aleph VC, OurCrowd, Google Ventures and Sequoia Capital, and had one of the profitable preliminary public choices in 2020 on the New York share swap a valuation of slightly below $ 2 billion.

It reported annual gross sales of $ 94 million in 2020 and $ 87.4 million within the first three quarters of 2021, however the firm shouldn’t be but worthwhile.

You’re severe We recognize that!

That’s the reason we come to work daily – to supply discerning readers such as you indispensable protection of Israel and the Jewish world.

So now we now have a request. Not like different information businesses, we’ve not arrange a paywall. Nevertheless, as a result of the journalism we conduct is expensive, we invite readers to whom The Occasions of Israel has turn into essential to assist our work by becoming a member of The Occasions of Israel Group.

For less than $ 6 a month, you possibly can assist our high quality journalism whereas having fun with The Occasions of Israel AD-FREE, in addition to entry to unique content material solely obtainable to members of the Occasions of Israel group.

Be part of our group Be part of our group Already a member? Log in to now not see this


Please enter your comment!
Please enter your name here