21–30 of 194 posts
In 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…
Earlier quoted context omitted.
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.
Does anyone know what an insurance agent makes? If I go to my local State Farm office to get a home owners policy, what is the cut that goes to the local office/agent?
An agent generally needs a couple hundred paying policies to be in the black.
You 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.
You 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?
Insurance can be cheaper if the customers lower their average risk burden. Lemonade tries to explain this, but not clearly: “We seek to encourage good behavior and build a long-term relationship based on mutual trust by endeavoring to decouple our financial incentives from variability in claims. In our model, we minimize any incentive to deny legitimate claims as we aim to give back, rather than pocket, leftover moni…
So do they simply have a nicer UX / more appealing model (marketing) to a younger generation? If so, I’m surprised they weren’t bought by one of the bigger brands by now.
It'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.
Price sensitivity can be a good thing for a competitor, and tech actually does help their business (see my cousin comments in this thread).
I work in insurance tech, but not for Lemonade or anyone affiliated with them.
You 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?
Insurance can be cheaper if the customers lower their average risk burden. Lemonade tries to explain this, but not clearly: “We seek to encourage good behavior and build a long-term relationship based on mutual trust by endeavoring to decouple our financial incentives from variability in claims. In our model, we minimize any incentive to deny legitimate claims as we aim to give back, rather than pocket, leftover moni…
This 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.
You 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?
Wall Street needs more of them.