Will ‘Lemonade’ Be the Uber of Homeowners Insurance?

[bobson]

We already have mutual insurers. I don't see how this is different other than the mutual will be much smaller. One big claim and things won't be so rosy.

 

[insurance1822]

There is a dangerous tone in this thread that feels like smug assurance that Lemonade brings nothing new -- or that they are doomed to fail.

We should take the disrupters very seriously. The taxi industry virtually slept through the Uber rise -- only screaming after their Ox was gored.

For this post -- no opinion, just encouragement to avoid a naysayer mentality that may turn out to have been wishful thinking.

TOUCHE....This is a very good point.

 

[shawnmwalker]

Last line of my post:

"I see this needing a # of Tweaks before the vision is truly achieved, but it is a great first step for them…..Not us."

 

[Brian Anderson]

I'm hoping to ask their CEO/co-founder Daniel Schreiber a question or two at or after his Q&A session at InsureTech Connect in two weeks. Thinking of asking about the dangers of having all of your clients being geographically concentrated; how they'll avoid attracting a pool full of insureds with bad credit and poor claims history; plans for expansion - stuff like that.

They've got a roster of execs with lots of high-level industry experience and I imagine they've figured a lot of things out, although like Shawn says I'm sure there are plenty of tweaks to come. Wish they could have figured out a way to have agents involved.

What would you guys ask him?

 

[FL P&C Broker]

"How is lemonade any different than any other mutual insurance company?"

 

[nyc2phi]

Can anyone dumb down how this operation works. I mean I understand how a mutual company works but I for some reason can't grasp how this would?

 

[thomasm]

Can anyone dumb down how this operation works. I mean I understand how a mutual company works but I for some reason can't grasp how this would?

Why wouldn't it work? Just look at esurance.

The question is, how to make it work for an insurance agency, without the carrier getting wise, starting thier own platform, and cutting out the agent distribution channel entirely?

 

[nyc2phi]

Why wouldn't it work? Just look at esurance. The question is, how to make it work for an insurance agency, without the carrier getting wise, starting thier own platform, and cutting out the agent distribution channel entirely?

I am not saying it won't work, I am saying I don't get the concept. Like how is this different then any direct online provider, because they're the first to do it with home insurance? Because they plan on donating proceeds to charity, is that it?

 

[InsuranceJerk]

They'll get eaten alive immediately by lawyers, public adjusters, etc. Also, you need to download an app to get a quote? Mmmm, no thanks.

 

[Cash]

My question is can this guys get around the regulations.

The taxi companies in Uber were playing by the rules and then Uber comes along and breaks all the laws.

If you are a big, highly funded startup that makes people feel good, give to all the right political causes, buy the media, and support in fashion progressive causes, the rules all the sudden no longer apply.

Of course the government has made the rules not apply to finance companies in the past and it has never turned out well.