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00:00Now that you've got this money Where have you been putting it to use and what sort of progress have you made since this cash infusion . Well Emily like you said we've been investing a lot in artificial intelligence and really trying to build an entirely new kind of company that's built on a substrate of technology and data. And what that means is that we can use A.I. to pay claims we pay claims in as little as three seconds and most of our resources are going into exactly that building a new kind of company built on that substrate. Now you obviously get a lot of very privileged information about your customers and you know over the last few weeks we've been talking a lot about privacy about data privacy. How are you sort of handling your relationship with the customer internally and have you learned anything at lemonades and some of the revelations we've seen coming out of Facebook. I think so. You know insurance is a social good it's an economic necessity but it's not trusted. It hasn't been for hundreds of years if you look at the urban dictionary you'll see it's defined as a promise to pay later that is never fulfilled. So trust and trust related issues have been endemic to insurance way before the Facebook issues rose to the fore. So we've really tried to build an alternative business model that aligns us with our customers insurance often finds you conflicted with the customer. If I deny your claim I get to pocket those moneys and we built a different business model kind of a Ulysses contract where we tie our own hands to make sure that we're really aligned with our consumers in a way that the traditional insurance players and some of the leading tech players have a difficulty doing. So if I'm a customer how might my experience with you be different than a traditional insurance giant. I think you'll find very little in common. So when you buy insurance on lemonade you download the app or you go to the website you'll be insured in a matter of seconds literally if you spent more than 90 seconds buying insurance you're probably doing something wrong. It's a seamless experience. We are talking to a chat board. It's delightful It's instantaneous and more remarkable than that is that when you make a claim it's the same thing. Zero paperwork instant everything a third of our claims are paid by our eye in three seconds you press submit and the money is back on your debit card within three seconds. And the third part is not only does he allow us to transform the experience but it allows us to lower costs. So for first time insurance buyers younger consumers the savings can be very dramatic. You're talking about 70 80 percent savings more often than not .

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How A.I. Is Transforming the Insurance Industry

Daniel Schreiber, chief executive officer and co-founder of Lemonade, discusses the benefits of artificial intelligence on the insurance industry and trust issues in data privacy. He speaks with Emily Chang on "Bloomberg Technology." (Source: Bloomberg)

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