Lemonade Co-CEOs to Resume Previous Positions, Seeking Clarity of Structure

The co-CEOs of digital insurance company Lemonade will return to their previously held positions on Jan. 1.

Shai Wininger will return to the position of president, while Daniel Schreiber will again be CEO, Lemonade said in a Wednesday (Dec. 20) filing with the Securities and Exchange Commission (SEC).

The company’s board of directors appointed the two executives to these roles Monday (Dec. 18) after Wininger and Schreiber said they would prefer to return to those positions they previously held, according to the filing.

The executives said “they believe that the clarity this structure provides outweighs the benefits of the Co-Chief Executive Officer structure,” per the filing.

They served as co-CEOs for 2½ years, the filing said.

“There are no changes to Mr. Wininger’s or Mr. Schreiber’s compensatory arrangements in connection with these appointments, and they will continue to serve as members of the company’s board of directors,” the filing said.

These changes are being made at a time when the Lemonade platform reached the 2-million-customer milestone and reported it sees a path to profitability.

Lemonade’s pace to reach its second million customers was 35% faster than the first million in 2020, the company said on Nov. 8.

“We’ve doubled our customers while increasing our premium by 3.5x,” Wininger said at the time. “This is indicative of the strong progression of the business in recent years, and outlines a clear path to profitability.”

Having already made the major investments required to launch in the InsurTech space, the company’s path to profitability will be paved by automation and other technology that helps spur growth, Lemonade Chief Financial Officer Tim Bixby told PYMNTS in an interview posted on Dec. 5.

For example, the flow of data across the Lemonade platform, as all the systems are interlinked, allows claims to be paid out in a matter of seconds via algorithms rather than friction-filled human interactions that can take weeks or months, Bixby said.

“Our real advantage lies in the depth of data that we collect about each customer when we onboard them and when they get a quote and a policy,” Bixby said.