“By now, I wonder how, Some people never know”
Don’t Believe The Hype – Public Enemy

I am a sucker for new stuff. I bet many of you are as well. If news of the release date of the iPhone 7 caused you to immediately organize your camping gear for a week long sidewalk holiday at your local Apple store, then you know what I am talking about. Beyond our excitement for the next iPhone or Tesla, apparently we also get all giddy for new insurance as well.

Recently a new insurer named Lemonade has popped up on the scene and has caused quite a ripple. Here are some recent news headlines:

• Some cool insurance products are finally on the horizon – Market Watch
• Lemonade is revolutionizing risk management – Asean
• Startup P2P Insurer Lemonade Reveals How First 48 Hours of Business Went – Insurance Journal
• Insurance startup Lemonade pays claims quickly, doesn’t profit from denials – Repairer Driven News
• Insurance Startups Push Peer-To-Peer, Online Policy Tech – Law360
• Peer-to-Peer Insurance Adds a Human Touch Through Mobile Technology – Insights
• How Lemonade’s founders raised a massive seed round just by talking – Business Insider

Wow! Give that publicist a raise. That is some quality publicity.

But it was when I saw this headline here on InsNerds: “The Sheer Genius of Lemonade – A Whole New Paradigm for Personal Lines Insurance”, I knew I had to speak out. Next thing I know, my good friend Tony convinces me to write this rebuttal.

So, to start, this article is NOT a criticism of Lemonade or what they are trying to bring to the consumer. Insurance is in desperate need of heart and soul. No, what this article will do is splash some cold water on the hype inferno that appears to have taken over the sane minds of our industry. So allow me to go point by point with my criticisms:

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