United StatesFinance and insurance2015 – ongoingLemonade
AI Jim claims bot
Lemonade's claims bot takes the first report on 98% of claims and has settled one in two seconds
Problem
Filing an insurance claim usually means forms, phone calls and waiting for an adjuster, and it is the point where customers most often lose patience with insurers. Handling each claim also carries overhead, known as loss adjustment expense.
Approach
Lemonade, founded in 2015, built its insurance business around chat bots. Customers buy policies through one bot and file claims by chatting with another, AI Jim, which takes the first notice of loss, runs anti-fraud checks and can pay or decline a claim without a human. Claims it is not allowed to settle, or that look suspicious, go to human claims staff with the bot's analysis attached; a separate bot platform, CX.AI, answers routine customer requests.
Results
Takeaway
Lemonade built its claims process around automation from the start; the two-second payout was its own record for one claim and was not typical. Despite automated handling, the company remained unprofitable in 2023, reporting a net loss of $236.9 million.
Categories
- Industry
- Finance and insurance
- Business function
- Customer serviceFinance, risk and legal
- Innovation type
- Business model innovationProcess innovation
- Adoption
- Built in-house
- Evidence
- Company's own claim
Sources
Source summaries
Lemonade describes its AI Maya and AI Jim bots and states that, as of the end of 2023, AI Jim takes the first notice of loss in 98% of claims and can pay or decline claims without human involvement, passing others to claims staff. It says the CX.AI platform resolves about a third of customer inquiries without a human. Lemonade also reports 1,258 employees, a 2023 net loss of $236.9 million and no profit since the company's founding in 2015.
Reports Lemonade's statement that its UK business settled a stolen-bike claim in London in two seconds, beating a three-second record set in the US. According to the company, AI Jim reviewed the claim, ran anti-fraud algorithms and issued payment instructions within that time.
InsurTech Digital reports Lemonade's claimed record of a two-second payout for a bike stolen outside a London shop. Lemonade operates in the US and Europe and attributes its fast claims processing to technology.
Full details are in the original sources.