In this video I will be talking about Lemonade‘s (NYSE: LMND) recently announced car insurance and what it could mean for the business.
If you look at the stock’s performance this year, you might think the business is failing. In fact, in-force premiums grew by 87% year over year in Q4 and gross earned premiums increased by 92%. Yes, customer growth has slowed down in recent quarters, but that’s because Lemonade is trying to get high-yielding customers at the moment. With that said, Lemonade has reached 1 million customers faster than most of its competitors.
Lemonade rolled out its life insurance product in the first quarter, so we haven’t seen any results yet. Life insurance is by far the largest insurance market Lemonade has entered so far (approximately $800 billion globally), but it’s also an industry that is ripe for innovation. The company is building up its product offerings fast, which will please a lot of current and potential customers.