Lemonade, an AI-enabled provider of homeowners and renters insurance, was hit with a privacy class action Friday in New York Southern District Court over its alleged collection and use of biometric data. Photographer: Gabby Jones/Bloomberg The AI-enabled insurance company, Lemonade was hit with a privacy class action over its alleged collection and use of biometric data. (Photo: Gabby Jones/Bloomberg)

The artificial intelligence-powered technology Lemonade has touted as being a gamechanger for the insurance industry is putting the internet insurer in hot water once again.

On August 20, Lemonade was hit with a privacy class action lawsuit (Pruden v. Lemonade, Inc., et al.) in the New York Southern District Court over its alleged collection and use of biometric data. The suit claims that Lemonade collects and stores customers’ retina scans, voice prints, and face scans without their knowledge or consent when they upload videos during the claim submission process. During this process, Lemonade’s AI chatbot analyzes the submitted videos for fraud to “pick up non-verbal cues that traditional insurers can’t.”

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Heather A. Turner

Heather A. Turner is the managing editor of ALM's NU Property & Casualty Group. She can be reached at [email protected].

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