The insurtech hopes to take full advantage of the market resurgence as the economy recovers from the pandemic
Insurtech Lemonade has filed for an initial public offering (IPO), targeting $100m.
This is according to filings in the United States Securities and Exchange Commission.
By doing this, the Softbank US-based insurtech hopes to take advantage of the market resurgence as the economy recovers from Covid-19.
An IPO is the act of offering the stock of a company on a public stock exchange for the first time.
Last year its premiums rose to $116m but it suffered a net loss of $109m – more than double its loss in 2018.
Giving back
Lemonade specialises in renters and homeowners insurance.
Unlike traditional insurers, the insurtech retains a fixed fee, which is currently 25% of premiums, with the remaining funds used to pay claims, while also using reinsurance to limit losses from high claims. For years that it sees low claims, the insurtech gives excess underwriting profits to charity.
The insurtech is also different from insurance marketplaces in that it is a full-service insurance provider.
Read more…The Briefing - Insurtech: Surviving Covid19 as government schemes for insurtechs ’not all it’s cracked up to be’
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