How do Companies like Haven, Fabric, and Lemonade Make Profits?

[shawnmwalker]

They don't make Profits....look at the reports.

 

[AZDave]

Shawn's right. They aren't making a profit.

But hey they are new and seem to be expected to bleed red.


Bigger and Redder: A Look at Q1 '18 for Lemonade, Other InsurTech Carriers - Carrier Management

 

[YouGotMyMoney]

Profit is just for the little guys.

 

[indienoise]

Funny part is that paying commissioned agents is considered to be too expensive for many of the carriers. However, national advertising with funny commercials with well paid celebrities is also not cheap & may not even get the proper message out about the product. in Michigan, we see Geico commercials all the time. However, GEICO has very few clients Michigan with a whopping 1.5% market share. how Expensive is that advertising, not to mention all the call center employees. BTW, Geico also had a 76% loss ratio in 2017 in Michigan.

Farmers spends big bucks on TV commercials in SC...and they don't even write here.
But didn't they recently cut commissions to their agents again?

 

[somarco]

They don't make Profits.

It was a number of years before Amazon was profitable.

Are they still around?

Why are those commercials with Alex Trebek still on TV and in print? Do they work?

 

[VolAgent]

It was a number of years before Amazon was profitable.

Are they still around?

Why are those commercials with Alex Trebek still on TV and in print? Do they work?

I remember some years ago, commentators were speculating if Amazon would ever be profitable.

I've been wrong enough that I will never bet against technology now. The only question is, which will be the winner.

 

[somarco]

never bet against technology

No doubt technology is posting gains in many segments. Web based stores are a big part of the reason why shopping malls, department stores, Sears, JCP, etc are sinking.

Buying insurance (almost any kind) is much more complicated and not transactional with the exception of most term life plans.

Buy a pair of pants online. If they don't fit you send them back.

Buy insurance online. You won't know if it works until a claim is submitted. By then it is most likely too late to "return" it.

 

[VolAgent]

No doubt technology is posting gains in many segments. Web based stores are a big part of the reason why shopping malls, department stores, Sears, JCP, etc are sinking.

Buying insurance (almost any kind) is much more complicated and not transactional with the exception of most term life plans.

Buy a pair of pants online. If they don't fit you send them back.

Buy insurance online. You won't know if it works until a claim is submitted. By then it is most likely too late to "return" it.

No argument at all.

The part you didn't quote, "The only question is, which will be the winner." No idea what insuretech will eventually emerge as the winner.

And let's be frank, there are plenty of insurance agents selling policies that should be returned, the buyer just doesn't know yet.

 

[somarco]

there are plenty of insurance agents selling policies that should be returned, the buyer just doesn't know yet.

True.

There are plenty of agents that need to be reprogrammed as well . . .

 

[DayTimer]

This prevailing belief has lead to companies like Haven, Fabric, and Lemonade.

They'll all be selling weed inside of 24 months ... uh oh ... I'm sorry ... I meant "cannabis."