THE LEMONADE LOCK-IN How AI is disrupting the insurance market By Jim Harris emonade is disrupting traditional insurers in an industry that takes weeks, or even months, to settle most property and casualty insurance claims. A New York-based insurer, Lemonade set the world record in December 2016 for settling a claim in just three seconds by using its claims bot powered by artificial intelligence (AI) running 18 fraud algorithms. The customer, Brandon Pham, clicked the "submit" button for a $979 claim for a stolen Canada Goose Parka. Just seconds later, the claims bot texted him that his claim was approved and payment instructions had been sent to the bank. L 26 SEPTEMBER/OCTOBER 2017 I T I S I N N O VAT I O Nhttp://www.lemonade.com