Lemonade CEO commented in the FT that the firm had deliberately floated at an earlier stage than many other tech companies. He added "Seeing the companies that have IPO’d in the last few years after they’d done all their growth in the private market . . . I’m not sure that did any great long-term favours for those enterprises.”
Like other so-called insurtech companies, Lemonade is aiming to disrupt a centuries-old industry which is still dominated by a handful of traditional names and has been slow to modernise. “No one has really emerged at scale in this industry for a really long time — not since the 1950s,” said Hugh Tallents at consultancy cg42. Lemonade says that, unlike traditional insurers, it does not make more money if it turns down claims. Instead, it takes a fee on each policy sold, and reserves that are not used for claims are donated to charity. Premiums at Lemonade, which was founded in 2015, tripled to $76m last year but the rate of customer growth is slowing and it made a net loss of $109m in 2019.