If you've ever cringed at the thought of buying insurance or balked at the bureaucracy in the process, welcome to Lemonade (NYSE: LMND). And if you think a new and perhaps refreshing take on insurance is a sign of better business, you might want to consider investing in this innovative and socially conscious company.
Lemonade is fairly new in the insurance industry and was one of the hot IPOs in July. In the short time it's been on the market, the share price skyrocketed before coming back to a more reasonable valuation. Let's take a look at the company's model and see if the valuation makes it a good buy today.
While technology has disrupted many industries, bringing customers more ease and convenience and changing the landscape for the establishment, insurance has been moving more slowly. But Lemonade, along with several other up-and-coming companies in the developing field of insurance technology (insurtech), has found a way to connect with young customers and make buying insurance quicker and simpler. It also has a charitable angle that speaks to groups who are motivated by making a difference.
Source Fool.com