Lemonade, the peer-to-peer insurance startup attempting to “Uberize” the industry, has announced Duke University Professor Dan Ariely as its new chief behavioral officer.
The hire gives further insight into how the Manhattan- based company plans to differentiate itself in the market, by leaning on different metrics than what insurers traditionally use. Ariely, a professor of psychology & behavioral economics and author of three New York Times bestsellers is set to play a big role in how the company will now use behavioral economics to sell policies to insureds.
“We’ve spent recent years deepening our understanding of honesty and trust, and our conclusion is that insurance is crying out for a makeover," said Ariely, in a statement. "With its unique business model and technology, Lemonade aims to reverse the adversarial dynamics that plague the industry, transforming both the economics and experience of insurance.
Lemonade is no stranger to high-profile hires of late. The company has appointed industry veterans to key positions within its company, including AIG’s Ty Sagalow as new insurance officer, and Robert Giurlando as chief underwriting officer from ACE.
“We believe that behavioral economics, together with our unique technology, will help us decrease fraud, get rid of bureaucracy and lower costs for our customers,” said Shai Wininger, Lemonade’s co-founder and president.
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