Lemonade (NYSE: LMND) is making strides with its artificial intelligence (AI)-powered insurance business, which seeks to upend the industry. It recently posted solid fourth-quarter results, showing that its models are improving and pricing policies better. Is now a good time for investors to buy the stock? Let's dive into Lemonade's business and find out.
Lemonade leverages AI to streamline the insurance process, automating everything from buying policies to handling customers' claims. The company's model leverages its trove of data and AI models to personalize quotes, reduce customer onboarding time, and resolve up to a third of customer claims.
In its early days, Lemonade focused on renters' insurance, targeting young adults to turn them into lifetime customers as it rolled out new products. With that in mind, homeowner's insurance was the next logical offering to add to its lineup. In addition, Lemonade sells pet, life, and automotive coverage.
Source Fool.com