The insurance industry, traditionally known for its slow pace of innovation, is undergoing a significant transformation fueled by artificial intelligence. At the Insurtech Insights Europe conference in London, the adoption of AI was a key topic, with organizations touting recent gains. However, speaking at the event, Lemonade CEO Daniel Schreiber expressed skepticism about the long-term viability of AI implementation for many firms.
“I think that many companies will absolutely fail at the AI test,” asserted Schreiber during his keynote address. “They’ll fail at it for the same reason that most acquisitions fail. On paper, it all makes sense, but there isn’t a DNA match and there’s organ rejection.”
Schreiber emphasized that successful AI integration extends beyond mere technological implementation; it requires fundamental cultural shifts within organizations. He argued that companies that fail to align their internal culture with AI advancements will struggle in practice. “The only way for AI to be successful in the organization, beyond being a tool that people use to write things and query, is if you prepare for it,” Schreiber explained. “AI, like people, needs to be trained. It needs feedback. It needs to be managed. It needs people looking over its shoulder and saying ‘yes’ and ‘no.’ If you build that platform, AI adoption will come.”
According to Schreiber, organizations must be prepared to “fire” AI when necessary, akin to the processes in place for human employees. He believes that the assumption amongst many insurance leaders that AI falls solely under the IT department’s purview is a mistake, as it overlooks the essential broader organizational infrastructure.
Daniel Schreiber co-founded Lemonade in 2015. The company has become an insurtech leader, offering renters, homeowners, car, pet, and life insurance across the US and parts of Europe. Lemonade’s platform employs AI-driven solutions rather than traditional brokers, although this approach has led to some controversy. However, Schreiber remains confident that AI-native companies have a distinct advantage due to their ability to innovate and scale operations more rapidly than established incumbents.
“Many of today’s major brands have survived and thrived for hundreds of years,” Schreiber noted. “But longevity should not be confused with immortality, because a new revolution is afoot. It’s gathering steam, and it’s rendering incumbents structurally disadvantaged.”
