Insurtech company Lemonade announced yesterday it had received a strategic investment from a major global insurance company.

The Allianz Group invested in Lemonade after having seen the latter’s ground-breaking business model.

Lemonade allows consumers to select a charity from a list; from there, the company then pays claims as any insurer would, but sends any excess funds from the insurance pool at the end of the year to the charity of its customer’s choice.

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As of this writing, details of the investment have not been disclosed.

“Allianz is committed to staying at the cutting edge of insurance,” said Allianz SE chief digital officer Solmaz Altin. “We follow the insurtech space closely and globally, and have seen nothing to match Lemonade in terms of technology, user experience and business model innovation. We’re thrilled to become a stakeholder in Lemonade, and will do what we can to accelerate their rapid expansion throughout the US and beyond.”

“Allianz is rightly regarded as one of the most forward thinking companies in our industry,” said Lemonade co-founder and CEO Daniel Schreiber. “Despite their unparalleled reach and resources, Allianz has no competitive business with Lemonade, and we look forward to deepening our relationship with them in the years to come.”


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