Robots in Insurance: AI’s Three-Second Claim

Insurance company, Lemonade, has used AI to revolutionise fast pay outs on claims.

SHARE

The insurance industry has been plagued with a poor claims experience featuring extensive paperwork and long wait times. But Lemonade, an insurance company powered by artificial intelligence (AI) and behavioural economics, aims to transform this process.

Daniel Schreiber, CEO of Lemonade

Lemonade, with some help from their claims bot named “AI Jim”, have set a world record by paying out an insurance claim in three seconds. In a move that could revolutionise how people buy insurance, Lemonade has paved the way for fast pay-outs on insurance claims.

The record was set two days before Christmas, at 5:47 pm and seven seconds, when Lemonade customer named Brandon Pham clicked the ‘submit’ button for a $979 claim on a Canada Goose Langford Parka. At 5:47 pm and ten seconds, AI Jim had already reviewed the claim, cross-referenced it, ran nearly 20 anti-fraud algorithms and approved it. Furthermore, the bot had also informed Mr. Pham that his claim was successful, while also sending wiring instructions to the bank.

Co-founder and CEO of Lemonade, Daniel Schreiber, was understandably ecstatic over his company’s pioneering service.

“From all we can gather, in the 3,000 year history of insurance, nothing like this has ever happened in 3 seconds. So we’re claiming the title. The number to beat is now 3 seconds, and we hope others will rise to the challenge.” – Daniel Schrieber, CEO Lemonade

“From all we can gather, in the 3,000-year history of insurance, nothing like this has ever happened in 3 seconds. So we’re claiming the title. The number to beat is now 3 seconds, and we hope others will rise to the challenge.”

While a number of unusual records exist in the Guinness Book of World Records, Lemonade’s record will unfortunately will not feature as one.

“Since no international standards exist for the payment of insurance claims, the Guinness Book of World Records was unable to enter Lemonade as the World Record Holder,” Schreiber explained.

Pham also praised the insurance carrier for its speed and efficiency. This achievement is even more significant considering most insurance companies don’t pay out anywhere until between a month and six weeks after a claim is made.

“I was shocked by how easy the process [was]. I signed up for Lemonade because it was no frills, the most affordable option, and took no more than two minutes on my couch. I try to avoid making claims but the process with Lemonade was so simple.”

Lemonade has set a record for paying out an insurance claim.

Pham said that the absence of paperwork combined with the ease of use led him to use Lemonade over more established companies.

“This time was different. I signed an honesty pledge, answered a few questions, and Lemonade reimbursed me in a matter of seconds!” Pham gushed.

Buying insurance through Lemonade is unique not only for the omission of paperwork, but also for what Lemonade does with their money. The company promotes social awareness as it takes a flat fee and gives back any unclaimed money to causes policyholders care about.