They are only writing low risk, low premium, low return policies. I know that market valuation has very little to do with profits, growth and well, reality. But $1 billion projected market cap for a company that writes mostly $102 HO-4’s?? Twll you what Lemonade, why not prove your genius and make that algorithmic digitize underwriting platform profitably grow and write FL coastal business (that no one else on Earth has been able to do) and then we can talk about the incredible “business model” you have going on.
I agree. Picking a low risk and low touch line of business to “digitize” is hardly a unique business model that delivers real value and there are a dime a dozen purveyors doing the same. Lemonade is nothing more than a cute name and a great marketing/pr pitch.
Perhaps the investors realize the same and want to exit now before the shine wears off their toy.
I agree. Renters, pet insurance, travel insurance, even micro-GL like Hiscox, that stuff should be digital just like buying plane tickets today. I don’t want to see another Lemonade headline until they take on a little risk
Lemonade has done an excellent job of convincing people that they are doing something unique. In reality, they are just operating a pretty standard internet only, direct to market model. They have a bunch of fluffy, gimmicky concepts, none of which are unique to them as a company… As noted in previous comments, maintaining a profitable combined ratio selling H04s is hardly difficult… HO4s have been a profitable line of business for as long as I have been in the industry… The property values are typically capped at incredibly low limits, and I have never seen a severe casualty loss on an H04 (I am sure they exist, but they don’t seem to be all that common).
They are only writing low risk, low premium, low return policies. I know that market valuation has very little to do with profits, growth and well, reality. But $1 billion projected market cap for a company that writes mostly $102 HO-4’s?? Twll you what Lemonade, why not prove your genius and make that algorithmic digitize underwriting platform profitably grow and write FL coastal business (that no one else on Earth has been able to do) and then we can talk about the incredible “business model” you have going on.
Or give middle market Work Comp a try.
I agree. Picking a low risk and low touch line of business to “digitize” is hardly a unique business model that delivers real value and there are a dime a dozen purveyors doing the same. Lemonade is nothing more than a cute name and a great marketing/pr pitch.
Perhaps the investors realize the same and want to exit now before the shine wears off their toy.
I agree. Renters, pet insurance, travel insurance, even micro-GL like Hiscox, that stuff should be digital just like buying plane tickets today. I don’t want to see another Lemonade headline until they take on a little risk
Lemonade has done an excellent job of convincing people that they are doing something unique. In reality, they are just operating a pretty standard internet only, direct to market model. They have a bunch of fluffy, gimmicky concepts, none of which are unique to them as a company… As noted in previous comments, maintaining a profitable combined ratio selling H04s is hardly difficult… HO4s have been a profitable line of business for as long as I have been in the industry… The property values are typically capped at incredibly low limits, and I have never seen a severe casualty loss on an H04 (I am sure they exist, but they don’t seem to be all that common).