Could Lemonade Be a Millionaire Maker Stock?
Lemonade (NYSE: LMND) was one of the hottest IPOs (initial public offerings) of 2020. That may not be saying much, since every tech IPO seems to be hot these days. But the insurtec (insurance technology) company's stock hasn't lived up to expectations so far. Is there still a chance for it to become a millionaire maker? I think yes. Let's see why.
Lemonade was born with the groundbreaking mission to make insurance likable and customer-centric. Lemonade's unique model has several facets that differentiate it from traditional insurance providers to achieve this goal. The major one is its reliance on machine learning and behavioral economics to offer prices to customers and help them file claims. Not only does this make for a faster and simpler process, it cuts the costs of hiring multiple employees to handle the load.
The digital substrate means that the median time to purchase a Lemonade insurance policy is 90 seconds, and a third of claims are approved and paid on the spot.
Source Fool.com
