Lemonade uses a fully digital claims process that captures a large amount of high-quality data. Customers log claims by recording a video explaining what happened. Lemonade’s AI (Jim) analyses the videos, looking for signs of fraud and then makes an immediate decision to either pay the claim instantly or divert the claim to a human for further inspection. The claims video can be re-played multiple times for human claims adjudicators to inspect carefully, unlike traditional claims.
This method of handling claims is both efficient for the customer (fast pay-outs) and protective for the company (flagging suspicious claims). But most importantly it captures all the metadata easily missed by humans whereas with traditional insurance companies, the data identifying past fraudulent claims is generally not fed into a system that gets smarter and better at handling future claims, but the AI method does. Find out more >