
Lemonade files S1 - ceohockey60
https://www.sec.gov/Archives/edgar/data/1691421/000104746920003416/a2241721zs-1.htm#bg40510a_main_toc
======
HeavenFox
I use lemonade for my renters insurance, since it’s cheaper than the
alternatives. I have to say their UX is a classic example of form over
function.

\- To buy and manage a policy, you have to install their mobile app. They have
a website, but to do anything substantial they redirect you to the app.

\- I canceled the credit card I use for the premium. To update the credit
card, I have to use the virtual chat bot, which comes with fake “typing…”
indicator.

I bet these fancy UX cost them a lot of money, but literally made the
experience worse.

~~~
tootie
Those kind of patterns sound like they are business-motivated and not form
over function. Look at sites like Facebook or Reddit that are perfectly suited
to mobile web but aggressively push users to apps. Apps make for a walled-in
experience and more engagement. And they let companies push more and more
features you didn't ask for.

~~~
9nGQluzmnq3M
For a site like Facebook and Reddit that most users use daily, sure, but how
often do you want to engage with your insurance company?

------
afwaller
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?

~~~
deeg
I'm tangentially involved in the insurance space and I believe Lemonade is
trying to use machine learning to process claims because:

\- Processing claims with humans is expensive; every step that can be
accomplished by a computer will probably be cheaper.

\- A claim processed via ML will probably be handled fast. A fast response =
happy customer, which helps with retention. This is a big one.

\- A claim that is processed and closed quickly is harder to amend. Some
customers slowly realize that adding items to a claim is free money. Others
(legitimately) forgot items and want to add them. A quick claim is usually
cheaper than one that might take a few days (or weeks) to process.

\- Younger generations are more used to working with a web pages and will
likely look at humans (e.g. agents) as old-fashioned.

The big carriers are both scared and dubious of Lemonade. If Lemonade can
somehow make it work they could do serious damage to the carriers. But it's
hard to see how they'll make the numbers work, as their current losses show.
Most of the carriers are trying to implement something similar (which is where
I'm slightly involved).

~~~
petra
So from your insider vantage point, how will the insurance job market look in
5-10 years ? What jobs, if any, would be left ?

~~~
deeg
I don't work directly for insurance companies so I am not a good judge of what
jobs will be around. I would expect that any job that deals manually with
claims--line entry, price evaluation, even fraud detection--will decline,
maybe a lot. However, I don't see them going away entirely--there are just too
many anomalies and the data you're dealing with is too dirty. That's not
sticking my neck out too much; you can say pretty much the same thing for any
broad industry. :)

I assume that Lemonade is banking on doing away with almost all manual
processing so they're ideas are different from mine.

------
xfour
_In parallel to this growth of topline and increasing efficiencies, our gross
loss ratio declined steadily from 161% in 2017, to 113% in 2018, to 79% in
2019 and to 72% for the three months ended March 31, 2020. See "Management's
Discussion and Analysis of Financial Condition and Results of Operations — Key
Operating and Financial Metrics."_

Seems like a struggle to get to profitability. With the ratio of closing the
gap slowing, sure looks like it's getting harder. This is what bugs me about
these companies, after years of running the business and doing 1 Billion in
revenue it's still a coin flip whether they will ever be profitable. How is
this any different from the first "Internet Boom" except that they've been
floated to a much bigger revenue number by VC losses.

So now the VCs want return on investment. The public is getting a chance to
buy, and some will, and the VCs make out, the founders probably already did by
selling to the VCs, but where is the value creation? Just a shell game.

~~~
harryh
It sounds like you don't know what "loss ratio" means in the context of an
insurance company. Loss ratio is the % of premiums collected that are paid
back out in claims. If the number is below 100%, then your core insurance
business is profitable

Of course, this doesn't mean your company is. Insurance companies have many
expenses beyond paid claims. But loss ratio should never get to 0% and, by
definition, can't be negative. 72% is pretty good for a relatively new
insurance business.

~~~
gen220
Here to echo. I work in insurance and 72% is actually _very_ good when you
consider (1) their trajectory of how long it took them to get there (2) how
strongly they're investing in growth, which is very expensive.

~~~
phonon
The 72% does not include overhead or sales and marketing, just losses and LAE.
I wouldn't call that _very_ good. Their combined ratio is more like 200%

~~~
divbzero
Thanks. I was looking for their combined ratio. I suppose it’s not surprising
that overhead is high for a fast-growing company. As with many startups, GAAP
only reveals part of the story and more fine-grained metrics are needed to
gauge potential future profitability.

For those unfamiliar with the combined ratio, taking a stab at an explanation
by simplified analogy…

For most normal companies:

    
    
                  Revenue
      −     Cost of goods
      ———————————————————
             Gross income
      −   Operating costs
      ———————————————————
         Operating income
      −  Interest expense
      ———————————————————
               Net income
    

For insurance companies:

    
    
                 Premiums
      −            Losses
      ———————————————————
            “Gross income”
      −  “Operating costs”
      ———————————————————
        “Operating income”
      + Investment income
      ———————————————————
               Net income
    

Most normal companies use profitability metrics:

    
    
          Gross margin =     Gross income / Revenue
      Operating margin = Operating income / Revenue
    

Insurance companies use inverted expense ratios:

    
    
            Loss ratio =                       Losses / Premiums
        Combined ratio = (Losses + “Operating costs”) / Premiums
    

(The above is obviously simplified, for the sake of illustrating by analogy.
For instance, insurance companies usually won’t have “Gross income” in their
financial statements, and “Operating costs” and “Operating income” are
typically called “Underwriting expense” and “Underwriting gain”.)

~~~
phonon
In their most recent quarter--

    
    
      Net earned premium 25.3
      Net investment income 0.9
      -------------------------------------   
      Total revenue 26.2
      
      Expense
      
      Loss and loss adjustment expense, net 18.2
      Other insurance expense 3.3
      Sales and marketing 19.2
      Technology development 3.5
      General and administrative 18.2
      -------------------------------------   
      Total expense 62.4
      
      Loss before income taxes (36.2)

~~~
gen220
18.2 / 25.3 ain’t bad. Sales and marketing at 19.2 seems a bit high, but I
guess they’re doubling down on growth, and it implies they have a long runway.
The administrative costs is the one that you’ll want to see grow
logarithmically, as 25.3 goes up, and it’s not unbelievable that it will.

~~~
phonon
> 18.2 / 25.3 ain’t bad.

It's somewhat worse than average, but trending in the right direction. Will
give a qualified "OK".

> Sales and marketing at 19.2 seems a bit high, but I guess they’re doubling
> down on growth, and it implies they have a long runway.

It's very high, relative to written premium. You can always buy market share
in insurance by increasing commissions and/or increasing marketing, and it's
okay to overspend in the beginning for branding/momentum purposes, but it's
not sustainable. They raised $500 MM, and spent $200 MM (and much of the
remaining $300 MM is needed for statutory surplus) so who knows how much
longer they can sustain that.

Administrative and tech I'm somewhat sanguine about, as long as they keep
moving upmarket to Homeowners' insurance. Renters' insurance is never going to
have a great margin. Tech is at least decent, and hopefully the kernel for
expanding easily into other markets.

~~~
gen220
Agreed on all points. The only caveat I’d add is that they might not need all
of that 300mm if they have a decent reinsurance deal on the books or in the
hand. My guess is that they plan on keeping all of the expense rows more or
less the same, while growing into new markets to increase their volume.

------
KingMachiavelli
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 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.

~~~
servercobra
They were cheaper for me until I realized they don't cover earthquakes, and
then they became much more expensive than bundling with USAA sadly. I'd
definitely be interested in them for most types of insurances though. They're
super easy to use and importantly, super easy to cancel.

~~~
bcrosby95
I don't know how it is for renters, but you can't find a standard homeowners
insurance that will cover earthquakes, at least not in California. This
occurred after the damages and insurance claims from the Northridge
earthquake.

You have to buy earthquake insurance through a state program that the
insurance company may offer - but it isn't really from the company, its from
the state. In general, they are extremely high deductible programs and only
for catastrophic loss - e.g. deductibles that are 25% of the structure.

~~~
0xffff2
I don't know about other insurers, but USAA's renter's insurance covers
earthquakes. Also, I just got a quote from Lemonade and they have an option to
add earthquake coverage via a third party.

I think the difference is that renter's insurance isn't covering damage to the
building. They're only covering damage to your stuff if it gets buried
underneath the building.

~~~
adeelk93
"Walls in" is what such a policy would be referred to as

------
richardwhiuk
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.

~~~
gen220
Insurance is a very different business model from tech business models. Losses
that are single-digit percentages of revenue are not bad, especially for a
company that's investing in growth. Shrinking loss while growing actually
shows that they have very good traction.

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.

~~~
bsamuels
how do you tell the difference between investing in growth and poor
underwriting discipline in such a young company?

~~~
gen220
It's a good and fair question, and it's one you can answer by looking at their
loss ratio trajectory.

You expect to see it really high in the beginning (while they're learning how
underwriting works), and to logarithmically decline over time, tending to
plateau somewhere reasonable. That's what their loss ratio trajectory looks
like, so far.

------
annoyingnoob
> If there's money leftover, we give it back to causes

I grabbed that quote from the web site. With State Farm if there is money left
over they give it back. While donating to causes is great, since you want to
avoid doing that it just looks like marketing.

We've really bad fires in CA in the last few years. I think claims were in the
$12B range from the 2018 fires. What happens to Lemonade when there is a mass
causality like this and many insured make claims at the same time?

~~~
fuzzer37
I'm not too knowledgeable about insurance in general, but from the S1 they say
"At Lemonade, excess claims are generally offloaded to reinsurers". So, I'd
assume if too many people start making claims, they themselves have insurance
against that happening.

~~~
annoyingnoob
Turtles all the way down?

~~~
fuzzer37
Presumably reinsurance claims are less frequent, and thus have some sort of
different pricing structure.

The wikipedia page on the subject is pretty interesting:
[https://en.wikipedia.org/wiki/Reinsurance](https://en.wikipedia.org/wiki/Reinsurance)

~~~
9nGQluzmnq3M
Links to this, which must be the coolest-sounding organization in the entire
insurance industry:

[https://en.wikipedia.org/wiki/International_Society_of_Catas...](https://en.wikipedia.org/wiki/International_Society_of_Catastrophe_Managers)

~~~
Phillipharryt
Oh but you haven't heard of the 'Equitable Life Assurance Society'. Not just
an organisation but a proper business until the 21st century.

Originally the "Society for Equitable Assurances on Lives and Survivorships",
but obviously that wasn't hip enough to survive past the 19th century.

[https://en.wikipedia.org/wiki/The_Equitable_Life_Assurance_S...](https://en.wikipedia.org/wiki/The_Equitable_Life_Assurance_Society)

------
Abalancedview
Hi all, I think this thread has been full of great discussion, and there has
been many questions surrounding Lemonade's financials and strategy.

I am a former investment banker, and enjoy analyzing companies in my spare
(limited) time. I've been following Lemonade since 2018 so their S-1 filing
piqued my interest.

[https://balancedview.substack.com/p/lemons-for-
lemonade](https://balancedview.substack.com/p/lemons-for-lemonade)

Long story short, I think there are two major topics that pop out upon
reviewing. 1) The unit economics are extremely concerning. 2) Cedeing 75% of
gross written premiums starting June 2020 not only shifts business model
towards a brokerage business, but also calls into question the true value add
of their heavily marketed ML / AI platform for underwriting, and the ensuing
loss decrease that can be generated from better data = more profits.

Happy to answer any questions, appreciate the look!

~~~
aquigley
Interesting read! It took me a bit longer to get through that S1 than you
though. A few points I'd love to discuss

> to become more efficient versus than competitors and ultimately lower loss
> ratios

I didn't see them explicitly mention their focus on reducing LR for their
business model. I read the LR data as a metric to prove their sustainability.

However, I explicitly saw them mention that they want to generate consistent
profits, with a reduced focus on pricing/claims, by just taking a fee. Their
utilization of ML AI is focused on the UI

> Thus the strategy of lowering their revenue, as ceded revenue to reinsurers
> doesn’t contribute to GAAP revenue

Where is there GAAP revenue reported? To me it looks like they included ceded
revenue in both "Total Revenue" (is this GAAP?) and their non-GAAP "Operating
Revenue"

~~~
Abalancedview
Thanks! After drafting & reading S-1s for years, my superpower is skimming
through quickly :)

On your first point, Lemonade's loss ratios are currently higher than industry
average. This is likely tail weighted & driven by a few outlier claims, as
their premiums underwritten are minuscule versus their large competitors.
Lemonade has every incentive to continue pricing risk better, and ML is the
perfect tool for this. Having spoken to CIOs (chief insurance officers) in the
industry, the amount of data insurance companies generate is tremendous, and
very quickly ML can spot correlations between price, claims payouts,
frequency, etc. Harnessing the data as the largest insurcos are surprisingly
manual & paper based, and asking the right questions to the machine is the
hard part, but Lemonade has the advantage of being more nimble & not
encumbered by the legacy tech stack.

Lemonade's original philosophy of taking a flat fee & donating the unpaid
claims, was driven by disincentivzing fraud. They hired behavioral scientists,
and this was big marketing push for their 1.0/1.5 platform. Insurance
companies only have so many value levers to pull, and I think while not
explicitly stated in the S-1, reading through publicly available posts & data
show Lemonade is very much focused on pricing risk correctly and lower LR.

Regarding point 2, GAAP revenue (rarely use this term) is on the income
statement throughout the S-1 (pg 18 is the first instance). Ceded premium to
reinsurers is excluded from GAAP revenue (pg 103 has a table breakdown).

My thought is Lemonade is marketing GWP front and center on page 2, but
shifting their biz to be heavily ceded to insurers, which lowers revenue. Yes,
Lemonade is receiving a fee in exchange, and maybe lowering liabilities on
their balance sheet. But, its not a great trade because 1) expensive CAC to
cede it away, 2) they essentially become a broker, and brokers don't generate
the multiples investors want, and 3) they don't take advantage of insurance
float.

------
TheSwordsman
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.

~~~
hammock
You really only would have heard of them of you got served an ad by them. They
do a lot of digital marketing. You must not be in their target demo. Not
knowing who you are, may I ask why you think that is?

~~~
coldpie
I'm always blown away when I encounter someone who browses the web without an
ad blocker. There's a better way, man!

~~~
mywittyname
They advertise heavily on YouTube and not every device has ad blocking
capabilities.

------
carstenhag
Have gotten ads for Lemonade in Germany. Their ads are _very_ misleading:

\- The ad is for a Haftpflichtversicherung. It pays, when you for example use
the phone of a friend and it falls down. You are obligued to pay for the
damage.

\- In the ad, they make it seem like your own device is insured, which is not
the case.

It does not seem to me that they are to be trusted.

~~~
ArmandGrillet
Using Getsafe in Germany, the app is good but they don't offer a full
translation of contracts in English (but AFAIK: no insurance does).

------
azinman2
What protects them? It’s unclear to me what’s their “unfair advantage”. I can
tell you what it’s not — a chat bot. Unless they have some NLP/AGI breakthru
(and if so, why are they an insurance company?), the apps that Allstate,
Geico, etc are pushing should be able to do the same thing. Even if not in a
“chat” interface, the end result will be the same.

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.

~~~
a_quigley
> If so, I’m surprised they weren’t bought by one of the bigger brands by now.

From the S1

"As a public benefit corporation, we will be less attractive as a takeover
target than a traditional company would be and, therefore, your ability to
realize your investment through an acquisition may be limited. Under Delaware
law, a public benefit corporation cannot merge or consolidate with another
entity if, as a result of such merger or consolidation, the surviving entity's
charter "does not contain the identical provisions identifying the public
benefit or public benefits transaction receives approval from two-thirds of
the target public benefit corporation's outstanding voting shares.
Additionally, public benefit corporations may also not be attractive targets
for activists or hedge fund investors because new directors would still have
to consider and give appropriate weight to the public benefit"

~~~
azinman2
Fascinating. It also makes it a les attractive investment for the stock
market, no?

~~~
aquigley
From an individual stock's financial performance perspective, sure.

Right now it looks like individual stocks are highly correlated to the broader
market. [1]

The economy and a diversified portfolio could benefit more from benefits to
broader society than anything they do individually. Public benefit
corporations could be a trend that could significantly grow in the coming
years

[1] [https://www.bloomberg.com/opinion/articles/2020-05-27/all-
th...](https://www.bloomberg.com/opinion/articles/2020-05-27/all-the-stocks-
are-the-same-now)

------
say_it_as_it_is
"In our model, we minimize any incentive to deny legitimate claims as we aim
to give back, rather than pocket, leftover monies. After our customers
purchase a policy, we ask them to designate a charitable cause for us to
support with the residual premiums from their policy. Despite there being no
contractual obligation requiring us to donate leftover premiums to nonprofits,
when a customer embellishes a claim, such customer reduces the total amount
available that can be contributed to nonprofits. As a result, we believe
customers are less inclined to embellish claims as they would be hurting a
nonprofit they care about, rather than an insurance company they do not."

~~~
strogonoff
It seems that Lemonade advertises charity as a psychological trick to make
customers willing to claim less money on their insurance, but is unlikely to
have processes in place that make donations actually work this way.

If Lemonade were serious about charity, wouldn’t they make themselves
_contractually obligated_ to donate excesses?

------
MAGZine
As a company trying to donate their leftover cash to charity, what's the
benefit of being public? Won't being beholden to shareholders mean wanting to
increase shareholder value vs upholding their commitment to charity?

~~~
bradlys
Where does it state they're giving all "leftover" cash to charity? I guess it
says it at the beginning but it sounds like marketing speak. What is even
"leftover" anyway?

> Our 2019 annual Giveback for the 12 month period ended June 30, 2019
> amounted to about 1.5% of earned premiums.

They take 25% on all premium to begin with. From what I know - standard in the
industry is somewhere between 20-25% cut. So, for them to take effectively
23.5% isn't weird at all.

If they go public - their employees can cash out. There's no way anyone at
Lemonade will stay unless that stock everyone is earning gets paid out.

------
CapriciousCptl
This is a neat company. Kind of interesting starting a new insurer at a time
of near zero interest rates. My gut is by using “AI” they mostly have a cost
advantage as opposed to better risk management but could be wrong and will
read through the filing. For anyone interested in diving in, I’d recommend
reading this first—
[http://www.columbia.edu/~dn75/Analysis%20and%20Valuation%20o...](http://www.columbia.edu/~dn75/Analysis%20and%20Valuation%20of%20Insurance%20Companies%20-%20Final.pdf)

------
nyxtom
This company is awesome, their integration into online mortgages and various
third-party platform home purchase listings/offerings makes them especially
suited to take over as things continue to progress in purchasing and closing
homes entirely online. I recently closed on a home through better.com and
lemonade is integrated quite well there as one of the options. Much of their
revenue comes from new homeowners and it definitely shows why.

------
foghornleghorn
"Delight" consumers was used 34 times in their S1. "Delighting" customers
seems to be the new hip way to describe what SAAS companies should do these
days. At the end of the day, it's nothing but marketing speak. Lemonade is not
a true software company... it's an insurance company at its core. And let's be
honest -- nobody gets delighted when buying insurance or making an insurance
claim.

------
gizmodo59
Can someone explain the following?

1\. Is it natural for CFO's to receive that many options? The executive
compensation chart looks like CFO receives much more than anyone else. 2\.
[https://imgur.com/a/Jl6W1P8](https://imgur.com/a/Jl6W1P8) Do they not share
the % shares owned by everyone until IPO?

~~~
a_quigley
The rest of the executives probably having ownership. If the CFO was a late
hire, their compensation comes from the options. I haven't done much research
on the CFO but many companies bring in a CFO as they prepare to IPO

------
elpakal
looking forward to hearing what Scott Galloway has to say about this

------
55555
Does anyone know why they chose to offer renters/casualty insurance?

I understand how their model is a bit different from other insurance
companies, and I think that's cool. But I'm still left wondering why they
thought this form of insurance (as opposed to auto, life, etc) was the easiest
to attack.

~~~
aquigley
Definitely the easiest insurance line to get started in for a variety of
reasons. Things like easier compliance, younger and uninsured demographics
that are easier to market to, and reduced complexity

Regulators also don't put as much financial scrutiny in lines that don't have
high caps (although they still scrutinize other aspects like consumer
protection).

If a "renters only" insurance agency goes under, most guaranteed funds could
pay it out without much consequence. It is a whole different story if a major
health insurance company were to go under.

~~~
55555
Thank you; that makes sense

------
bryanmgreen
Nice to see another growing company be a Public-Benefit Corporation as well as
a Certified B-Corp.

Wall Street needs more of them.

------
Apocryphon
I wonder how Metromile's numbers compares to theirs.

------
supernova87a
This is also for me, the first time ever hearing about this company.

And reading their mission statement, they say: "Harness technology and social
impact to be the world's most loved insurance company."

This is a little bit laughable. Since when ever has a bank, insurance company,
or finance-related company been "loved" by its customers? Bringing you joy
every day? Maybe they should aspire to a more realistic goal.

~~~
idoh
Point taken, but a lot of people seem to really like their credit union (which
is a bank).

------
jordache
opex is significant in the insurance industry's profit margins. If you can
sustainably conduct underwriting or any of the back-office flow w/o humans,
you are at an advantage in terms of operational cost.

Quite often in the insurance industry a cost margin in the low single digits
is considered good.

------
fataliss
Wonder if that is related at all in timing with their pet insurance offering
coming out soon!

------
dzonga
for an insurance company, who supposedly uses bots, their numbers are
horrible. $1M in marketing spend to generate $2M premiums. Revenues are low,
losses are ultra high

~~~
propter_hoc
How do you figure? A 6 month CAC payback period (based on the numbers you are
quoting) is totally fine for a recurring revenue stream, even if it were at
typical SaaS churn rate. Besides which, churn is really low in insurance,
certainly much lower than for the typical SaaS product.

~~~
shostack
No kidding. Many SaaS businesses would kill for that payback period.

~~~
Abalancedview
Unfortunately their LTV / Cac is terrible, I've provided a full teardown on
what parts of the S-1 trouble me the most (unit economics and revenue growth).

[https://balancedview.substack.com/p/lemons-for-
lemonade](https://balancedview.substack.com/p/lemons-for-lemonade)

Their payback period isn't 2 years, not even close with 18% gross margins.

Let me know what you think!

~~~
cleverprankster
Nice analysis. For your unit economics calcs, their retention isn't 75%. That
figure excludes customers that the company churns. When you include those
figures into retention, the Year 1 retention is 62% and the overall 2 year
retention is 44%.

See here in the Customer Retention section for more details:
[https://www.meritechcapital.com/blog/lemonade-
ipo-s-1-breakd...](https://www.meritechcapital.com/blog/lemonade-
ipo-s-1-breakdown)

~~~
Abalancedview
Thank you, I have read through your analysis as well and think it has a lot of
interesting points.

Regarding retention, I chose to not incorporate regulatory or underwriting
risk driven cancellation to capture demand driven cancellations only. I expect
as time goes on and Lemonade's capital increases & they fine tune the
underwriting model / better price risk, these Company forced cancellations
will decrease, as they have the past two years.

I'd be interested to know what % of customers transfer to a competitor vs. not
needing the renters / homeowners product anymore.

I do agree with you, however, that this lowers their implied customer lifetime
even further, and by extension unit economics.

------
randtrain34
This is pretty insane, it's just 5 years old!

------
coronadisaster
Not available in FL... Scared of hurricanes?

------
glofish
Asked for a quote for my home, got an estimate that is twice more expensive
than what I already have with Progressive

so much for machine learning algorithms ... :-)

------
bradhe
> the worlds most beloved insurance company.

Woof.

------
justinzollars
I shopped on Lemonade and found a low grade insurance offer. Why is this on
hacker news?

------
aphextron
They've somehow managed to build an insurance company that loses money.
Incredible.

~~~
bradlys
Am working at similar insurance "tech" company.

Maybe you'd be surprised at how easy it is to lose money... At least - to me -
it seems hard to be profitable with the margins required to have a silicon
valley office + salaries. The company I'm at is very worried about loss ratio.
You oversubscribe to one region because you're competitive there and some
minor weather event happens - bad time. Even if your company isn't paying
directly for losses, you lose lots of money in having to handle claims and you
lose leverage with contracts in the future with the people who do actually pay
out the claims.

~~~
a_quigley
Which one is that?

