Meet Lemonade (NYSE: LMND), the global insurance provider that’s reinventing insurance through technology and by placing social good at its core. The company, powered by artificial intelligence and behavioral economics, offers renter, home and pet insurance in the U.S, and contents and liability insurance in Europe (currently Germany and the Netherlands and expanding). Lemonade donates unused premiums to charitable organizations. On July 2, Lemonade listed publicly on the New York Stock Exchange.
The company’s Giveback charitable program isn’t traditional philanthropy nor “corporate social responsibility.” They have built a socially-impactful business model. Lemonade charges a flat fee and uses the rest of premiums to pay claims. The company then gives leftover premiums to nonprofits selected by its community through its annual Giveback. Since 2017, the Lemonade community has given back over $2 million, simply by choosing a cause to support when getting an insurance policy. Giveback donated over $1.1 million to 34 charities in 2020 alone.
“Since our founding days, Lemonade has been a Public Benefit Corporation with a double bottom line.. We believe that many consumers and investors want to invest in brands whose values align with their own. That means profit maximization and social impact are mutually reinforcing, rather than mutually exclusive,” said Yael Wissner-Levy, Vice President, Communications.
Lemonade is also a Certified B Corporation, which is certified by B Lab, an independent nonprofit organization. Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose.
On becoming a Certified B Corporation, Wissner-Levy commented: “Our status as a B Corp and commitment to charitable giving distinguish us from our competitors and promote a relationship among our employees and customers founded on trust. We value the power of creativity and encourage and support the sharing of ideas to enhance our business model.”
"We're taking care of our customers while our customers take care of their communities, and as Lemonade grows, so does the potential of Giveback." Yael Wissner-Levy, Vice President, Communications