Yesterday, Lemonade announced the launch of their long awaited Life protection offering through a strategic partnership with Bestow. This is an important milestone for the digital-protection market because it represents a got to market approach enabled by a completely digital partnership between the partners. In Lemonade’s case, it leverages their investment in an open API architecture. Lemonade will keep control over the customer onboarding, while Bestow does the technical work with the integration of the risk assessment, fluid-less underwriting and balance sheet capabilities – helping to keep the process as frictionless as possible. The combination is a superior, digital experience to purchase Life protection.
This represents a clear example for the path forward for the new model – a strategic partnership between two digital players, leveraging each other’s strengths, and is a challenge to traditional players who have higher cost, less efficient customer engagement and application/under writing processes and technologies.