A New Disruption: Catalyst vs. Traditional
Traditional insurance relies on lifetime agent commissions. Lemonade's "Catalyst Model" disrupts this by paying a higher, one-time fee to acquisition partners.
Traditional Agent Model
Agents are paid a 10-15% commission every year, for the entire life of the policy.
Est. 10-Year Commission Cost (on $300 Premium):
$450
Lemonade Catalyst Model
Catalyst partners are paid a fixed fee (e.g., 20-30%) for a limited period—typically just 1-2 years.
Est. 10-Year Commission Cost (on $300 Premium):
$120
The Commission Crossover
The catalyst model's costs flatline after Year 2, while the traditional model's costs compound indefinitely.
The AI Viability Engine
AI-Driven Cost Reduction
Efficiency at Scale
3
Seconds
Record time for AI Jim to process and pay a claim.
~40%
Of claims handled by AI with zero human intervention.