Peer-to-peer insurance company Lemonade has raised a new round of funding from XL Innovate, the venture capital arm of insurance firm XL Catlin. The size of the round is undisclosed.
New York-based Lemonade is yet to launch, but says it aims to replace brokers and bureaucracy in the insurance space with bots and machine learning to eliminate paper work and provide instant services.
“We track the insurance space very closely and have analyzed virtually every insurtech initiative in recent years,” said Tom Hutton, managing partner at XL Innovate.
“Lemonade is a standout by any measure. Its team and technology is matched only by its ambition, and I have every confidence that it will continue to lead the insurtech field.”
As a part of the deal Hutton will join the company’s board.
“Tom is the only person I’ve met who speaks both insurance and tech like a native,” said Daniel Schreiber, co-founder and CEO at Lemonade.
“For a full-stack P&C insurtech company like Lemonade, his expertise is uniquely valuable.”
Lemonade says it is preparing to launch in its native New York and in December took on $13m in a seed round led by Aleph and Sequoia Capital.
The company also hired behaviour scientist Dan Ariely in February to take on the role of chief behavioural officer.
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