3Yr·

Insurance company conquers the market🎯?

Surely each of us has at least one insurance policy taken out, but this can also be taken out for a wide variety of cases. Did you know that there is an "anti-luck policy"? With this one you get a compensation sum of up to 2500€ if you play the lottery weekly over the whole year but never got more than 2 right hits - crazy🤪.

Back to the topic...Within Germany, there were a total of 323.7 million property & casualty insurances in 2019 & more insurances every day abgeschlossen🏋🏽‍♀️.

Marketplayer...🥊?

Lemonade ( $LMND (-0.67%) ) is a peer-to-peer property & casualty insurance company & offers the following "products":

🏬 digital homeowners & liability insurance policies (DE).

🏡 policies for renters and homeowners (USA)

In 2016, they started selling renters insurance policies, where the company managed to have an inventory of $300 million in pet life, homeowners, and renters insurance policies in a very short time. In addition, Lemonade announced plans to add auto insurance to its portfolio in the coming year🚗.

Use of AI🧠

The company uses a Chattbot to keep the entire process Simple & Fast:

👨🏽‍💻 Chattbott is used to provide individual insurance for the customer

🤝 Chattbott is used that customers can submit their claims

The clientele seems mostly enthusiastic about the simplicity & speed of this solution and accordingly the customer satisfaction looks good🏆.

Charitable business model🌎

Lemonade keeps a fixe fee from the paid contributions to cover the general expenses. Excitingly, I find that "if there is money left over this will be donated" & the choice of charity is chosen according to the customer's wishes🛍.

Potential🚀

📈 Premium growth year over year is 92%.

- New customers joining & existing customers taking out additional pet &/or life insurance policies

💰Revenue guidance for the current fiscal year is $123 million

- Excluding potential launch of auto insurance

🤑 Estimated spend by Lemonade customers on auto insurance is $1 billion

- Auto insurance integration opens large market & could drive further growth

What is your take on Lemonade & their future growth in the market🤖?

Did you know Lemonade or is the stock already in your portfolio🧐?

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Source: The Motley Fool, Marketscreener, Lemonade.com,

Statista

9 Comments

Strategie 41@RedZone

3Yr

Do I want to invest in (generally) insurance when I know that more natural disasters will occur due to climate change? (And thereby the insurers more under pressure Geraten? ) The value itself, sounds actually intressant. How are reserves formed if only the basic costs are kept and the rest is donated?

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Kobe (.@TheDividendCollector

3Yr

Some insurance policies exclude liability for damage caused by natural disasters and that is why Allianz does not have to cover any costs this year, despite this year's flood disaster in North Rhine-Westphalia and Rhineland-Palatinate, @VileEnd

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Strategie 41@RedZone

3Yr

Thanks, I didn't know that 😁.
What private actually means you (I) should look through your insurance policies again after such a clause.
@TheDividendCollector

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BörsenBuddy@BoersenBuddy

3Yr

@VileEnd It probably makes sense to read any final contract in full,,,but I think we're all a bit behind on that🧐

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Robert Sch.@RobiNewbi

3Yr

Digital insurers are only interested in price, which is the completely wrong aspect of insurance. In addition, the products are absolutely weak in terms of performance. For an all-around sensible coverage, I need extra modules and thus extra premiums. Here, it's all about convenience and speed - performance and, above all, advice in the event of a claim.... No chance. All these digital insurers are absolute filth. My opinion ✌😌

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Albert von Staden und zu Echzell@buyhighselllow

3Yr

@RobiNewbi horrendous acquisition fees and expensive insurance wrappers for private AV are on the brink of extinction. Well-founded advisory expertise is only available in fee-based advice anyway. The market is cleaning itself up here.

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Robert Sch.@RobiNewbi

3Yr

@buyhighselllow With all due respect, that's a load of rubbish. I don't know what bad experiences you've had, but you're lumping everyone together like that without any well-founded arguments. Anyone who makes their own digital contracts regularly falls flat on their face!

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Deleted User

3Yr

Comment was deleted

BörsenBuddy@BoersenBuddy

3Yr

@FinanceShopfloor I don't have is in my portfolio...so far I only hold the ETFs that can be seen in my dashboard💸 An acquaintance had told me something about the insurance😋 But I never had it on my screen, but I became aware of it again through the article on The Motley Fool 😋

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