Lemonade has taken a bite-sized slice of insurance- renters and a single immediate claim settlement is analysed with interesting thoughts.
More complex claims require a "augmented intelligence"- combining the power to sift the data "wheat from the chaff". Not just the information on the claims notification form (CNF) but being able to access and analyse information held across the insurance carrier.
Combining the experience of human behaviour, that every competent fraud investigator has ( the Sherlock Holmes genius), with a capacity to follow a hunch across all the big data available:-
- The free text area in every CNF
- Photo & Video metadata
Most insurance carriers can only access and analyse around 10-15% of this data.
Enterprise strength insurtech solutions should be able to access 80% to 90% to exploit the value of big data.
It's no good taking the cloudy option just because it looks good. Insurance carriers need the clear option to reduce fraud, process claims faster and sgtrip out unnecessary cost.
Not to take away from Lemonade which proves the benefits of digital transformation and new insurance platforms
The details of the anti-fraud technology, admittedly, I am not aware of. If the technology has to do with facial recognition, pantomimes, and virtual lie detectors – very impressive. I believe Christopher Walken’s character in the movie True Romance would also be impressed (CW may be possibly disrupted as well). But if this digital, lie detector, technology is what is used, how come we don’t hear more about it? Would Lemonade be better suited as a business model licensing this technology to current insurance carriers, law enforcement, etc. Why try to start an insurance company? With all the regulations, capital requirements, hurdles, barriers on entry seems like a tougher way to utilize this technology.