Towards the simplification of insurance policies

American insurtech Lemonade has created a simplified digital insurance policy. This model, known under the name of “police 2.0”, puts an end to the practice of traditional insurers who generally present contracts that are too long and hard to understand.

Lemonade policy comprises 2271 words and 11 exception clauses instead of the average 20 000 words and 220 clauses generally found in usual contracts. The new contract may be read in 10 minutes instead of the minimum 75 minutes required for any person keen on going across the entire policy, which never happens.

Daniel Schreiber, CEO and co-founder of the start-up admits having himself difficulties to understand all the clauses of the contract that he proposed to his customers. D. Schreiber is inviting insurers to follow in his footsteps and to finally draft transparent and intelligible insurance policies.