There has been a lot of back and forth on the issue of Lemonade Daniel Schreiber reinventing the insurance market. It is undeniable that plenty of other insurance companies are using tech, data, and AI similarly.
However, those investing in Lemonade believe in the thesis that insurance is the most disruptive industry on the planet. It’s undeniable that there’s a bit of pattern recognition there.
In recent years, we saw how people’s writing moved from paper to digital, how music moved from cassettes and CDs to streaming and MP3s, and how a film moved from chemical to digital again. Every time the industry saw its substrate shift from analog to digital, a few things took place:
That is why it’s easy to accept that insurance is going through a similar change.
The insurance industry has been around for hundreds of years, and everything has been done in a particular way with brokers and paper. Today that is changing as the industry shifts with the help of companies like Lemondate, leading the industry into a total digital substrate.
So, suddenly, the industry sees explosive growth with sales and revenue. We just hit a million customers four years after the founding. It took USAA, which is an incredible company, 47 years to get to the same milestone. And when you see that kind of change, there is a case to be made that this is a changing degree amounting to a changing kind.
The recent stock price issue and a tweet made by the company COO could be puzzling for the general public. The tweet itself was not meant to defend the stock price. We have very little interest in a day-to-day stock price. That is a multi-year and multi-decade journey because insurance companies can last for hundreds of years.
So, what we are trying to do is not to be done in quarters or months. The short-term price of the stock was not of interest to the COO. And it is not of interest to me either. We are really with the eye on the long term. The tweet was deleted because we have found an outpouring of support by investors, by the community, at large. And overall, we couldn’t be more grateful to them because they continuously doubled down on Lemonade and believed in the future. And I think with good reason.
Victoria is a Content Writer at American REIA, covering the latest industry news and various insurance topics, including auto, home, health, and life insurance.
Date added: March 1, 2021