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  #61  
Old 09-26-2016, 01:33 PM
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Anyone saw the Ice T commercial with GEICO? Seems almost as if they are advertising for them given the timing...
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  #62  
Old 09-30-2016, 04:12 PM
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They're writing homeowners and renters in NY.

Still can't find much on their legal structure. It sounds almost like a reciprocal insurance exchange where they manage the exchange for a fee. I believe Erie Insurance is similar, where they don't bear the solvency risk and just run the exchange, but I believe they don't allow their subscribers to self-segregate - they are all pooled together and offered the exchange's rates.

Anyone familiar with this kind of stuff?

Last edited by Final Boss; 09-30-2016 at 04:21 PM..
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  #63  
Old 10-17-2016, 11:56 AM
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http://www.insurancejournal.com/news.../10/428750.htm

Many links at source that didn't make the copy/pasta

Quote:

Startup P2P Insurer Lemonade Reveals How First 48 Hours of Business Went

Lemonade, the peer-to-peer insurtech startup that launched only a few weeks ago on Sept. 21 selling renters and homeowners insurance in New York, sold 142 policies and generated $14,300 in gross written premium in its first 48 hours.

In an unusual move for an insurer, or any company, Lemonade revealed the early numbers in a message from co-founder Shai Wininger. Wininger said the move is in keeping with the firm’s commitment to transparency and honesty.

“What we’re about to do here doesn’t come easy. But I’ll do it anyway,” Wininger wrote before sharing the results.

The public data show that more than 36,000 people from around the globe visited the site in the first 48 hours. Most were from outside New York, which is the only place Lemonade is currently selling. However, about 4,570 were from New York and 14.8 percent of the visitors from New York who asked for a quote ended up buying.

In its first two days, the insurer sold 142 policies. The average renters policy gross premium sold in the first 48 hours was $86.25 ($7.1 per month), the average condo premium was $528 ($44 per month) and homeowners $691 ($57 per month).

Wininger said that in the past two weeks, Lemonade’s average homeowners policy has grown to $1,120 ($93 per month).

The site has a feature it calls “switching” that allows users to cancel other policies they may have, obtain a refund, and buy a new policy from Lemonade with a click of a button. The preliminary data shows that its new customers came from State Farm, Allstate, GEICO, Liberty Mutual and other traditional insurers.

As expected, Lemonade appeals to younger customers, with 43 percent of visitors ages 25-34 and 29 percent ages 35-44. More men than women visited. But a surprising percentage (seven percent) of visitors were older, 55 years and up.

Nearly 2,000 people downloaded Lemonade’s app.

Unlike many other insurtech startups that are process solutions or rely on traditional insurers to bear the risk, Lemonade is itself a licensed insurer. Lemonade’s license was approved on Sept. 15—only days before it launched.

Daniel Schreiber, CEO and co-founder along with Wininger, speaking at last week’s InsureTech Connect Conference in Las Vegas, said he wasn’t sure if the licensing would be approved in time. Waiting for it was nerve-racking. “It came through at the last minute,” he told the audience. “What a relief.”

Schreiber said that Lemonade went the more difficult route of becoming an insurer because it ultimately wants to be a vertically integrated company that is free of the legacy issues that traditional insurers have and is not dependent upon any of the existing players in the insurance value chain.

Just “sprinkling pixie dust on top” of an existing insurance company or system would not produce the change he and Lemonade’s founders are trying to achieve, he said.

Lemonade’s founders believe the current insurance system is “antagonistic” and “annoying” —as its own behavioral scientist claims in a promotional video. They have promised to reinvent the insurance business model and make the process of buying it much nicer and easier for consumers.

Lemonade attracted $13 million in seed funding from outfits including California’s Sequoia Capital and Aleph, a venture capital firm that typically partners with Israeli entrepreneurs.

A peer-to-peer, or P2P insurer, invites users to form small groups of policyholders who pay premiums into a pool to pay claims, but members get any leftover funds at the end of the policy period. Lemonade says it will donate any leftover funds, or underwriting profit, each year on customers’ behalf to a cause of their choice. Lemonade Inc. is a public benefit corporation that promises that social impact is part of its business model.

Entrepreneurs Schreiber and Wininger (who is also company president) have attracted veteran insurance executives from AIG and ACE for Lemonade’s executive team. Among them: Lemonade Chief Insurance Officer Ty Sagalow, a veteran executive from American International Group.

Everest Re, Hiscox, Lloyd’s of London, XL Catlin and Berkshire Hathaway’s National Indemnity are among Lemonade’s global reinsurance partners.
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  #64  
Old 10-17-2016, 11:57 AM
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http://www.insurancejournal.com/news.../10/428875.htm

Quote:
Liberty Mutual’s Peters Joins Startup Lemonade as Chief Underwriting Officer

Lemonade, the new peer-to-peer insurance company that opened for business last month, has named John Peters as its chief underwriting officer.

At Lemonade, Peters will be responsible for insurance product terms and conditions, pricing levels, risk and concentration management, and reinsurance strategy.

Peters is joining Lemonade from Liberty Mutual, where he held leadership positions including executive vice president of commercial insurance operations, chief underwriting officer and chief product officer. While at Liberty Mutual, he overhauled the broker distribution strategy, launched a new technology platform and opened an outsourced processing operation in India.

Peters previously served as co-head of North American underwriting practice at McKinsey & Co.

Prior to McKinsey, he spent 2000-2001 as a business development director for the property/casualty insurance technology startup, OneShield in Boston.

Peters joins the insurance team in Lemonade’s New York office that includes Ty Sagalow, formerly president of product at AIG; James Hageman, formerly senior vice president of claims at ACE; and Ron Topping, formerly head of P&C financial planning and analyses at AIG.

“From an underwriting perspective, Lemonade has capabilities that have not been seen before. During its first 24 hours of operation, for example, Lemonade collected half a million data points from consumers. This opens underwriting possibilities that its 100-year-old-competitors simply don’t have,” said Peters in the announcement. “It’s not that incumbents don’t see change coming – it’s that overnight, their culture, business model and legacy systems turn from assets to handicaps.”

Last month, Lemonade announced it had been licensed as a full insurance carrier by New York state and began selling homeowners, condo and renters policies. In addition to digitizing the entire returns unclaimed money to causes chosen by policyholders.
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  #65  
Old 10-17-2016, 04:02 PM
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I thought this part was slightly fishy:

However, about 4,570 were from New York and 14.8 percent of the visitors from New York who asked for a quote ended up buying.

15% bind rate when presumably there will be a lot of people checking it out just for the sake of checking it out, in the first 2 days, with nothing but an internet platform? What happens when the excitement factor goes away-- the bind rate will be ridiculous. I can't help but think that % is inflated but I may be totally off.
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  #66  
Old 11-09-2016, 11:16 AM
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Here is a look at their web traffic through October. Very little generated from social, and declining...the next few months will be interesting.

https://www.similarweb.com/website/l...e.com#overview
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  #67  
Old 11-09-2016, 11:42 AM
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Quote:
Originally Posted by r. mutt View Post
Here is a look at their web traffic through October. Very little generated from social, and declining...the next few months will be interesting.

https://www.similarweb.com/website/l...e.com#overview
The only country with an uptick is India. Makes me think of that Silicon Valley episode where they hire a click farm in India to boost traffic numbers.
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  #68  
Old 12-12-2016, 10:53 AM
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http://www.insurancejournal.com/news.../05/433992.htm

Quote:
Insurtech Lemonade Wins $34 Million in New Funding As It Readies for West Coast Expansion

Lemonade, the home and renters insurance company run by artificial intelligence and behavioral economics, announced a $34 million B round of funding.

The latest round was led by General Catalyst with participation from GV (formerly Google Ventures), Thrive Capital and Tusk Ventures, as well as existing investors Aleph, Sequoia, and XL Innovate. This brings Lemonade’s total funding to date to $60 million.

The investment comes less than a year after Lemonade announced its seed round and less than two months after the insurtech company launched in New York.

Lemonade was licensed as an insurance carrier in New York on September 15, 2016. The company said it has filed for a license in California and plans to expand in 2017.

In an unusual move, in September Lemonade revealed its early numbers after its New York opening in a message from co-founder Shai Wininger. It said it sold 142 policies and generated $14,300 in gross written premium in its first 48 hours.

“We believe in replacing brokers and paperwork with bots and machine learning, and we now have the backing to unleash this formula across new products and geographies,” said Daniel Schreiber, co-founder and CEO at Lemonade, announcing the new funding.

Lemonade uses bots, or software that automatically performs simple tasks, to deliver insurance through its app and at lemonade.com. Consumers also file claims with the bot, which is authorized to pay claims instantly and without human intervention, creating what Lemonade’s founders say is a “delightful” insurance experience for customers.

Unlike traditional insurance companies, Lemonade takes a flat fee and gives back unclaimed money to causes policyholders care about. Lemonade’s “Giveback” program derives from studies by Lemonade’s Chief Behavioral Officer, Professor Dan Ariely, and has earned Lemonade a B-Corporation certification.

“Lemonade is revolutionizing insurance, transforming one of the largest and most outmoded industries into an enjoyable experience for consumers,” said Joel Cutler, managing director, General Catalyst and a Lemonade board member.

“We look for companies that have the potential to radically improve customer experience, and we saw that clearly in Lemonade. They are harnessing a compelling mix of behavioral economics, artificial intelligence and great design,” said Tom Hulme, GV General Partner in the announcement.

Source: Lemonade
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  #69  
Old 12-23-2016, 09:22 AM
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Got to love the fine print. They have been advertising they take 20% and then you see this:


Source:https://lemonade.com/faq#service

Glad you asked! Lemonade keeps a fixed 20% fee. This pays for developing loads of cool tech, paying our team's salaries and hopefully making some profit!

The remaining 80%?
Job #1 is to ensure we can always pay claims
Job #2 is to Giveback money that isn’t needed for Job #1.

Here’s how that works:
We spend approximately 20% buying ‘reinsurance’ from folks such as Lloyd’s of London, to ensure there will be enough money for your claim even in ‘bad’ years.

This kind of reinsurance buys us all peace of mind, but it is costly. So our data scientists have modeled an optimal mix of internal and external ‘reinsurance’, and we set aside another ~20% as our very own ‘Lemonade Reinsurance’. Think of it as a our ‘rainy day fund’.

We say ‘approximately’ because the costs of reinsurance fluctuate over time, and there are other smaller expenses (transactional fees, premium taxes and others) that are also paid out from this combined 40%.

The final 40% is what we can Giveback to the cause you selected each year, if none of the people who selected that cause make a claim. Of course most years there will be some claims, so the amount available for Giveback will average less than 40%. But our number crunchers tell us there should be a nice amount left for most causes most years.

And what about the ‘bad’ years? Fear not. That’s what the reinsurance is for, and our Lemonade Reinsurance as well as our reinsurance partners have set aside funds for exactly such a situation. It’s like we said: Job #1 is to make sure your claim is paid, job #2 is to Giveback what’s left.
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  #70  
Old 12-23-2016, 09:23 AM
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another gem from the fine print:

When do you pay the Giveback?

On June 20th of every year we calculate and pay the Giveback. We pay the Giveback in 4 equal payments over 4 years.
What happens to my Giveback if I cancel my policy before receiving all four payments?

Lemonade only pays a Giveback with respect to active policies.
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