[ryanianian]

As a fairly happy user, it's not clear to me how Lemonade solves these problems and ultimately ends up making money by trimming margins.

They still market heavily, and I presume they paid well for their (pretty good) branding.

When I applied there was a wait between applying and having coverage: an amount of time I suspect correlated to a human having to review materials.

My local market has weird insurance regulation, so I had to reach out for customer-service to ensure coverage which wasn't explicitly in the policy. The regulation and compliance department of any insurance company is likely rather large and expensive and rather difficult or risky to offload to AI.

I haven't had to make a claim, but I get the strong opinion that automated claim approvals are basically a function of claim amount and claim history. Anything over $X or for your Nth claim still involves a human at least as a gatekeeper. The AI may be real, but it seems strongly like the usual "fake it till you make it" AI that lots of companies claim to have but are actually 'mechanical turks'.