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
(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.
start worrying? We do not think so. But all the market players that still doubt telematics in vehicle insurance should think twice.