Lemonade Should Pay Attention to These Insurtech Challengers

Lemonade (NYSE: LMND) has been a volatile rocket ship since its IPO in July 2020. The online insurer went public at $29 per share, opened at $50 per share on its first day of trading, and it currently trades in the mid-$80s -- but remains richly valued at 44 times this year's estimated sales.

The bulls believe Lemonade's disruptive potential justifies that premium. Its AI chatbots and algorithms simplify the byzantine insurance sign-up process by insuring its users within 90 seconds and processing claims within three minutes, making it an appealing choice for first-time buyers. It already offers home, renters, pet, and term life insurance plans, and intends to add auto insurance in the near future.

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Source Fool.com