Lemonade files S1
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Lemonade files S1
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Re: Lemonade files S1
#2Wonder if that is related at all in timing with their pet insurance offering coming out soon!
Re: Lemonade files S1
#3You only make insurance cheaper by charging risky people more.
Right now it is mostly laws that protect categories of people that keep insurance companies from charging people more.
What’s the plan here, use machine learning in a “hands off” way with a black box algorithm to apply pricing discrimination in a way that a human could not because of regulation?
Re: Lemonade files S1
#4In my case Lemonade was by far the cheapest option for renters insurance - even cheaper than bundeling with my auto insurance. Glad to see the company is doing well. I suppose it's greatest risk is incumbents offering more aggressive bundle pricing. So It'd be interesting to see if Lemonade could expand into the auto insurance sphere.
Actually from the S1:
> in February 2020, we announced our intention to launch pet insurance, and we may in the future choose to enter, as underwriter or as agent, into additional vertical markets, such as auto and life insurance, in order to achieve our long-term growth goals.
It sounds like they will enter other insurance markets provided the regulations aren't too costly.
Re: Lemonade files S1
#5This is honestly the first I'd ever heard of their company; interesting!
Only thing that would keep me from jumping is lack of auto insurance as well, but I understand NOT being in to that business.
I hope they do well.
Re: Lemonade files S1
#6[deleted]
Re: Lemonade files S1
#7It's difficult to see why this is a good investment.
They've made a net loss for every year in operation - although granted that loss is shrinking.
This isn't a tech business - it's an insurance business that uses some tech.
There's no network effect, and they are operating in a price sensitive market.
Re: Lemonade files S1
#8You only make insurance cheaper by charging risky people more. Right now it is mostly laws that protect categories of people that keep insurance companies from charging people more. What’s the plan here, use machine learning in a “hands off” way with a black box algorithm to apply pricing discrimination in a way that a human could not because of regulation?
One interesting approach would be to actually charge less risky people less, and "safe" people more, as a way to equalize various groups in the society. Once this has enough traction, doing it the other way round could be even stigmatized.
Re: Lemonade files S1
#9You only make insurance cheaper by charging risky people more. Right now it is mostly laws that protect categories of people that keep insurance companies from charging people more. What’s the plan here, use machine learning in a “hands off” way with a black box algorithm to apply pricing discrimination in a way that a human could not because of regulation?
Not disagreeing that is part of the strategy, but also it is worth thinking how much overhead there is in the insurance industry. How many offices are there nationwide? How many of the jobs are essentially basic data ingestion? Approving of claims? How much is spent on advertising?
Probably a fair amount of fat to trim.
Re: Lemonade files S1
#10You only make insurance cheaper by charging risky people more. Right now it is mostly laws that protect categories of people that keep insurance companies from charging people more. What’s the plan here, use machine learning in a “hands off” way with a black box algorithm to apply pricing discrimination in a way that a human could not because of regulation?
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