Lemonade is a direct-to-consumer digital insurance company that sells renters, homeowners, pet, car, and life insurance in the U.S. and Europe. Customers buy and manage policies entirely through Lemonade's app or website, using AI chatbots for onboarding and claims. Lemonade targets younger, digitally native consumers, with products designed to expand as customers move through life stages. As of year-end 2025, Lemonade had approximately 3 million customers. Like a traditional insurer, Lemonade collects premiums, pays claims, and keeps the difference — but takes a fixed fee from premiums rather than retaining all residual profit, using reinsurance to limit claims volatility. Lemonade cedes a portion of premiums and losses to reinsurers through quota share agreements, and recently reduced its ceding rate from ~55% to ~20% as loss ratios improved, allowing it to retain more revenue. Car insurance is Lemonade's fastest-growing product and top strategic priority, with roughly half of new car customers cross-sold from Lemonade's existing base at near-zero acquisition cost. Pet insurance is also growing rapidly, with a Chewy partnership driving new customer acquisition. Europe — where Lemonade operates in Germany, Netherlands, France, and the UK — is a small but fast-growing part of the business. Lemonade's core operational differentiator is AI-driven automation: ~55% of claims are fully automated, headcount has remained flat at ~1,280 while premiums have grown substantially, and loss adjustment costs run below those of larger incumbents.