Lemonade gets California licence

Lemonade Inc, a tech-driven insurance start-up, has won approval from California regulators to sell policies in the state, the company said.

The insurer’s foray into California comes amid the company’s push to become licensed nationwide, less than a year after launching in New York. Last month, Lemonade, which sells policies directly to consumers through its website and smartphone app, expanded into Illinois.

Lemonade, whose policies become available in California, is seen by the industry as a “disruptor,” or a company that stands to upend how consumers have traditionally done business.

The insurer is part of a broader movement among financial and technology or “fintech” companies that are trying to disrupt longstanding business models.

In the first quarter this year, venture-backed fintech companies in the United States raised USD1.1 billion, an eight percent drop from the previous quarter and down 39 percent from the same period a year ago, according to venture capital database CB Insights.