Is Lemonade a Sweet or Sour Stock for Your Portfolio?
Insurance is a multitrillion-dollar business that consumers need in nearly every aspect of life. Insurance technology company Lemonade's (NYSE: LMND) artificial intelligence-driven user interface brings a fresh take to the industry, but this rapidly growing stock carries high risks and rewards alike. Here are two reasons to be excited and two reasons to be concerned about Lemonade's prospects moving forward.
We need insurance companies, but nobody actually likes dealing with them. Traditional insurance companies drag their customers through call centers, sales agents, and a combative claims process, because paying you hurts their bottom lines. As a result, insurers typically have low-single-digit net promoter scores, which measure how likely consumers are to recommend the brand to a friend or colleague.
Lemonade's direct-to-consumer model uses artificial intelligence-powered chatbots to handle consumer-facing tasks such as sales (chatbot Maya) and claims (chatbot Jim). Using Lemonade's mobile app, customers can buy a policy in as little as 90 seconds and file a claim in three minutes.
Source Fool.com
