Digital insurance company Lemonade has renewed its reinsurance programme and formed a new risk-bearing entity, Lemonade Re, in the Cayman Islands. Lemonade, which is ‘powered by AI and social impact’ offers renters, homeowners and life insurance. Its reinsurance initiative is led by its existing partners. The company says the centrepiece of the reinsurance programme is 55 per cent quota share protection. The programme covers all Lemonade’s global businesses, including Metromile which was acquired by the firm in 2022. Through Lemonade Re, the company expects to hold some of its retained riske. It has established a captive cell at a Bermuda transformer, and plans to utilise it to retain most of its windstorm exposure. Daniel Schreiber, Lemonade co-CEO and co-founder says: “These partners allow us to operate in a very capital light mode, and focus our resources on expanding our customer base across all of our products and geographies. While harnessing our technologies to get ever more efficient at matching rate to risk.”
