Lemonade pioneers an unusual insurance model

Lemonade is the free mobile app of a US insurance company that offers peer-to-peer insurance. Essentially, members form pools of insurance policy holders who pay into a joint pool that funds their policy. If any money is left over in the pool and not used to pay insurance claims, the company donates it to charity. The app allows users to find pools in their area and purchase both renters’ and homeowners’ insurance quickly. Simplicity and ease of use -in contrast to the challenges associated with normal insurance purchasing- are the key points of the app.