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Lemonade selects Mitchell for claims solutions

The collaboration highlights the wider trend in claims automation processes

  • Rajeeb Gurung
  • August 12, 2022
  • 3 minutes

US digitally native insurer, Lemonade has selected Mitchell for its claims workflow, automation, and total loss solutions. The software specialist will support the insurer’s latest product offering, Lemonade Car.

Lemonade will leverage Mitchell’s auto physical damage and auto casualty solutions to streamline and optimise claims handling.

Mitchell will support Lemonade through the automation and online delivery of auto physical damage claims management functions including loss reporting, loss profiling and triage, and damage appraisal.

The insurance company will also utilise Mitchell’s auto casualty injury claims processing solutions to automate both first-party auto and third-party liability claims.

The collaboration comes less than a year after the launch of Lemonade Car in November 2021. The service originated in Illinois and has since expanded to Tennessee and Ohio, with Lemonade looking to roll out the service nationwide.

Lemonade Car enables users to file claims in minutes and receive emergency auto and repair services. It uses the company’s proprietary insurance operating system Blender, which automates manual tasks when handling car claims.

Lemonade goes all-in on car insurance

To further advance Lemonade Car’s reach and capability, the insurer last month completed the acquisition of car insurance provider Metromile for 7.3 million Lemonade shares.

At the time of the acquisition, Shai Wininger, Lemonade co-CEO had highlighted Metromile’s ten years of data as one of the main reasons for the purchase.

“For ten years, Metromile’s intricate sensors monitored billions of miles of driving, while their AI cross-referenced this data with hundreds of thousands of claims, to accurately score each tap of the brake and turn of the wheel,” he said.

“We believe that adding these models into the Lemonade Car platform will make the most delightful car insurance also the most competitive, precise, and fair.”

Insurers adopt technology solutions

Lemonade’s focus on automation underscores the wider trend among insurers looking to technology to streamline their services and attract customers.

Automation in claims specifically has been one of the focuses for insurance providers as they look to eliminate the pain points of manual entry for customers.

According to a recent study by Accenture, $170 billion in premium is at risk over the next five years as customers switch carriers due to unsatisfactory claims processes.

The report also highlights an efficiency loss of $85 to $160 billion over the next five years as underwriters spend over 40% of their time on non-core activities.

To avoid the potential losses insurance firms and technology providers have been boosting their automation capabilities.

Last week, digital insurance platform provider, EIS, acquired Metromile’s Enterprise Business Solutions, a SaaS-based claims automation and fraud detection solution, from Lemonade to bolster its insurtech solutions.

This week, claim services provider Cannon Cochran Management Services partnered with Gradient AI to utilise the latter’s AI software to enable automatic prediction of the risk level of new and existing claims.

In May, New York-listed insurer Crawford & Company also adopted an automated motor claims liability assessment solution, BAIL, in the UK following its partnership with UK insurtech, Automated Insurance solutions.

In France, AXA secured the services of consultant Cognizant to overhaul its legacy technology with modern IT infrastructure as part of its wider digitalisation strategy to adopt digital solutions in its offerings.