On Tuesday, it was announced that XL Innovate has made a significant investment in the peer-to-peer insurance company Lemonade.

Lemonade touts itself as the “world's first peer to peer insurance company.” The company achieves this by taking away brokers and bureaucracy from the underwriting process, replacing them for automated processes and machine learning. Through this innovation, Lemonade “promises zero paperwork and instant everything.”

XL Innovate is a venture capital firm that supports technology-related innovations for the insurance industry. The firm’s main investor, XL Catlin, is one of Lemonade’s major reinsurers.

Also announced was the inclusion of XL Innovate managing partner Tom Hutton into Lemonade’s board.

"Tom is the only person I've met who speaks both insurance and tech like a native," said Lemonade co-founder and CEO Daniel Schreiber. "For a full-stack P&C insurtech company like Lemonade, his expertise is uniquely valuable."

"We track the insurance space very closely, and have analyzed virtually every insurtech initiative in recent years," remarked Hutton. "Lemonade is a standout by any measure.  Its team and technology is matched only by its ambition, and I have every confidence that it will continue to lead the insurtech field."

According to a release, Lemonade is preparing for its upcoming New York launch.


Related stories:
Peer-to-peer insurers a hazard to consumers, warns regulator
P2P insurer Lemonade to be reinsured by Berkshire Hathaway, XL Catlin