I don’t have a strong opinion about the company’s business model / chances of success but it’s great to see that Lemonade are planning to go public, to give anyone who’s interested the chance to invest in them.
They’re one of the more innovative InsurTech companies out there, as they’re full stack so they control the whole of the customer journey, when someone buys insurance from them & have ambitions to automate payouts for claims. They’re also very tech orientated & have an accessible API
It’s still pretty early days for them though, as they only launched towards the end of 2016 and they’re still in the process of expanding across the United States, while having ambitions to go global. They’ve done well at capturing market share in the states that they’re in so far, although it’d be good to see some more detail about their financials before drawing any conclusions.
Lemonade are using machine learning and data to transform how insurers assess risk. Loss ratio - one of their key performance metrics has improved at a staggering rate as their risk and pricing models ‘learn’.
They can also straight through process their customer sign ons and claims.
So they are both lower cost, and will soon have more sophisticated pricing models than any incumbent insurer. In other words their business model is truly disruptive. They have chosen a very specific market to learn with - renters insurance. But that is just the start.
Very investible - I am super keen to access this IPO ASAP
I am super keen on this. There are so tasty margins in insurance and I like the look of this company.
How soon until FT would look to list an individual stock because of an IPO?
Me too I’d love to see them on Freetrade as soon as possible. Their business model is really interesting as well, with unclaimed premiums going to a nonprofit of the user’s choosing in an annual giveback.
nice little company. Had a fair bit of volatility today