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Lemonade + Metromile
#UBI #acquisition #insurance
POSTED ON:
November 17, 2021
What exactly has happened? Watch the hands:
Lemonade is a US Insurance company specialized in home insurance with a digital approach.
Metromile is an insurance company focused on pay-per-mile vehicle insurance.
Alakazam – and now they are one! But the real magic is that the former real-estate insurer appears on the stage as a car insurer. Yet another sign that UBI is becoming a standard in vehicle insurance, at least in B2C.
Seems like good news for telematics insurance believers, but the skeptics put the fly in the ointment by saying that both Lemonade and Metromile are unprofitable IPO’d companies with strong marketing. But we, at Draivn, always think positive:
❗Lemonade will benefit from its vertical integration by upselling car insurance to its house & pet insurance clients. There is an obvious trend that one-stop solutions in insurance will dominate the retail market.
❗Lemonade significantly cuts the time to market for its new products, including vehicle insurance. There are three reasons for that:
While Lemonade has a vehicle insurance license in only one US state, Metromile is licensed for car insurance in 49 states. Lemomile or Metronade (naming is not our strong point) would cover the whole USA.
Without Metromile, Lemonade would have to develop and adjust its own scoring and underwriting systems – the process that takes years. Now, they acquired the driving history from 100,000+ policies, which instantly brings Lemonade’s vehicle UBI capabilities to a new level.
End customer always wins as the competition spurs, as it brings better prices, user experience, and claim services. This is how it works in every market, and usage-based vehicle insurance is not an exception with more and more insurers adopting data-based services. And Lemonade will surely contribute to this.
Should Progressive, Liberty and Allstate start worrying? We do not think so. But all the market players that still doubt telematics in vehicle insurance should think twice.
Lemonade is a US Insurance company specialized in home insurance with a digital approach.
Metromile is an insurance company focused on pay-per-mile vehicle insurance.
Alakazam – and now they are one! But the real magic is that the former real-estate insurer appears on the stage as a car insurer. Yet another sign that UBI is becoming a standard in vehicle insurance, at least in B2C.
Seems like good news for telematics insurance believers, but the skeptics put the fly in the ointment by saying that both Lemonade and Metromile are unprofitable IPO’d companies with strong marketing. But we, at Draivn, always think positive:
❗Lemonade will benefit from its vertical integration by upselling car insurance to its house & pet insurance clients. There is an obvious trend that one-stop solutions in insurance will dominate the retail market.
❗Lemonade significantly cuts the time to market for its new products, including vehicle insurance. There are three reasons for that:
While Lemonade has a vehicle insurance license in only one US state, Metromile is licensed for car insurance in 49 states. Lemomile or Metronade (naming is not our strong point) would cover the whole USA.
Without Metromile, Lemonade would have to develop and adjust its own scoring and underwriting systems – the process that takes years. Now, they acquired the driving history from 100,000+ policies, which instantly brings Lemonade’s vehicle UBI capabilities to a new level.
End customer always wins as the competition spurs, as it brings better prices, user experience, and claim services. This is how it works in every market, and usage-based vehicle insurance is not an exception with more and more insurers adopting data-based services. And Lemonade will surely contribute to this.
Should Progressive, Liberty and Allstate start worrying? We do not think so. But all the market players that still doubt telematics in vehicle insurance should think twice.
TAGS:
Lemonade, UBI, insurance, Metromile
Thirsty for the new? Lemonade got it!
Just a few weeks ago, Ilon launched his UBI insurance offering. The dust around Tesla’s entering telematics insurance has just settled down, while the industry and the adepts of UBI have been shaken by another stunning news piece.
Just a few weeks ago, Ilon launched his UBI insurance offering. The dust around Tesla’s entering telematics insurance has just settled down, while the industry and the adepts of UBI have been shaken by another stunning news piece.
Lemonade acquires Metromile to scale its recently announced car insurance.
✋ But what about commercial lines? Should we start thinking about adopting telematics insurance for fleets? Definitely, as the B2B sector is growing. Its future is enabled by telematics and fleet management. We see more and more MA activities in this space already (Wheels and Donlen, ALD and Leaseplan). The result is forthcoming:
✅Fleet owners and operators will be happy to get tailored real-time insurance policies.
✅Leasing companies will embed these into their portfolio.
✅Insurers will benefit from telematics (cut loss ratio, avoid high risks, improve claim management).
✅Draivn will be here to sort all the data and technologies, mess out and enable harmonized telematics data for fleet insurers and other mobility stakeholders.
Want to check how it all becomes possible? Follow Draivn.
✅Fleet owners and operators will be happy to get tailored real-time insurance policies.
✅Leasing companies will embed these into their portfolio.
✅Insurers will benefit from telematics (cut loss ratio, avoid high risks, improve claim management).
✅Draivn will be here to sort all the data and technologies, mess out and enable harmonized telematics data for fleet insurers and other mobility stakeholders.
Want to check how it all becomes possible? Follow Draivn.
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