Lemonade becomes first Insurtech UK member to be awarded carrier licence
Lemonade has become the first Insurtech UK member to be granted a carrier licence by the Prudential Regulatory Authority (PRA), according to a statement released yesterday (22 June 2023).
A carrier licence provides authorisation for a firm to carry out activities that the PRA regulates.
New firms wishing to become an insurer, bank, credit union or managing agent of a Lloyd’s syndicate must apply to the PRA for a carrier license.
Sarvesh Ramachandran, Lemonade’s country manager and head of UK branch, said: “We are thrilled to be the first member of Insurtech UK to receive the PRA licence in the UK, a testament to our commitment to bring insurance into the 21st century, driven by AI [artificial intelligence] and social impact.
“We believe insurance should be instant, simple and accessible – this license empowers us to continue delivering exceptional value and a world-class experience to our customers in the UK.”
’Important milestone’
New York-based Lemonade launched in the UK in October 2022 with the help of Aviva as its long-term strategic partner.
It is the third firm in the UK to receive a carrier licence – in November 2019, Zego became the first insurtech in the UK to be awarded a licence, while Marshmallow also received one in September 2021.
Unlike Lemonade, both of these firms are not members of Insurtech UK.
Insurtech UK is a trade association for insurtech startups and currently has more than 115 members.
Getting insurance licences for insurtechs has been an issue that the trade body has made a priority since 2019 as it would afford insurtechs the opportunity to work more independently.
John Warburton, co-chair of Insurtech UK, said that issuing Lemonade a licence was an “important milestone for other insurtechs alike and is encouraging for the sector in the UK”.
“Insurtech UK welcomes the news that the PRA granted a UK carrier licence to our member Lemonade,” he said.
“There is certainly demand for other companies to follow suit and Insurtech UK is working closely with the PRA to help speed up the process for insurtechs”