Lemonade Inc., a tech-focused homeowners and renters insurance company, is looking to disrupt the insurance industry with their recent proposal of an open-source renters insurance policy. Much like open-source software, an open-source renters insurance policy would allow anyone to change the policy, even rival insurers.
Why is this a good idea? While this proposal is a definitely a proof-of-concept experiment, it does have merit. An open source insurance policy could be written in language that is easier for the average consumer to understand, and could easily be customized to fit the needs of different people.
Lemonade is calling this open source renters insurance project “Policy 2.0”. The company has expressed its hopes that this policy will be the first of many different kinds of open source insurance policies that consumers will like, and other insurers will adopt.
Lemonade goes into more details about this Policy 2.0 in a blog post, saying:
“Each Policy 2.0 will be unique and dynamically-generated, based on the choices the user made. While people can print Policy 2.0, it’ll be at its most powerful on a screen. When the policy says that $20,000 of property is covered, for example, our Live Policy technology makes that sentence clickable, so the user can instantly change that to $30,000. If the user wants to add earthquake coverage, to take another example, they can initiate that from within the policy itself, and the policy will morph to include earthquake coverage.”.
Will open source insurance policies take off? Maybe. Only time will tell, but it is exciting to see more companies, particularly in the insurtech space, continuing to innovate and change the insurance industry. More options are always better for consumers, and insurers.
As always, if you are interested in purchasing a new insurance policy or upgrading an old one, we encourage you to reach out to the staff at TGS Insurance. They are experts in all types of insurance and are always willing to let you pick their brain about whatever insurance questions you may have. Visit www.tgsinsurance.com to learn more.