Insurance is one of the largest markets in the world, generating over $5 trillion in annual revenue and it’s being disrupted by Lemonade (NYSE: LMND) right now! The company is building an insurance experience that is easy, affordable, and hassle-free by injecting technology and accountability into an industry that often lacks both. Knowing all this, could Lemonade really be the next 100-bagger in the making? In this article, I will cover all the reasons, including my bull and bear thesis on how Lemonade will fare over the long term.
Business Model
Lemonade is an Insur-Tech company, focused on disrupting the insurance industry by injecting technology and AI. The company uses AI and big data to run its work processes such as allowing customers to purchase insurance or making claims. On the backend, the company uses AI to manage workflows and predict possible frauds. On the frontend, they utilize AI chatbots to interact with customers, underwrite policies, and pay claims. This allows Lemonade to provide a high-quality user experience at a lower cost than traditional insurers....