The Stakes

While the traditional insurance model has inherently misaligned incentives between insurers and consumers, as denying claims increases profits, Lemonade remedies this by taking a fixed percentage of the premium, meaning it has no incentive to reject claims or make life difficult for its customers. Given its entirely new approach, not surprisingly, Lemonade faced issues with insurance regulators in a number of states.

The Process

Tusk first led Lemonade’s regulatory campaign strategy to break through an impasse with New York insurance regulators over Lemonade’s license application. We succeeded in reaching a resolution, enabling Lemonade to secure its primary license and launch operations. We then replicated the model nationally, working in California, Texas, Florida, Illinois, Pennsylvania, Georgia, New Jersey, Nevada and many other states to allow Lemonade to launch their local operations. At the same time, Tusk also helped maximize earned media to effectively position Lemonade positively to regulators, legislators and the public, and helped develop partnerships with real estate developers, asset managers, municipal agencies and nonprofits.

The Conclusion

Lemonade was able to successfully launch in New York, California, Texas, Illinois, Nevada and many other states.  In addition, the “Lemonade Law” was passed by the Florida legislature in 2017, paving the way for their expansion.