Informa Insurance News 24
LEMONADE CRITICISED FOR ALLEGED SECURITY FAILINGS
US insurtech Lemonade has been the target of vehement criticism by analyst Muddy Waters Research for alleged flaws in its online security. In an open letter, Muddy Waters said it was telling its clients to go short on Lemonade stock because of alleged flaws in its online systems, shortcomings he claimed Lemonade has ignored. The letter said in the course of accessing Lemonade’s website to do business research, Muddy Waters accidentally discovered a security flaw that allowed it to access its customers’ personally identifiable information (PII). A spokesperson for Lemonade told Insurance Day that what Muddy Waters Research found were links to four insurance quotes shared by Lemonade users themselves. "That’s not a vulnerability, we designed our quotes to be shareable, so anyone can share their quote with their family, friends, or mortgage bank. Since Google indexes Pinterest and blogs, these links end up being discoverable on Google."