Lemonade pursues a secondary stock offering
2020: An exceptional year
To cap off an exceptional year, Lemonade also that it had reached one million customers, a milestone it reached in record time (4.25 years) compared to industry heavyweights like State Farm, Allstate, GEICO, and USAA.
“We’re proud to hit the one million customer mark so early in the life of the company,” said Shai Wininger, Lemonade co-founder and COO.
“With every new customer, our system grows smarter, our underwriting gets better, and our prices become more accurate and fair. At Lemonade, one million customers translates into billions of data points, which feed our AI at an ever-growing speed. Quantity generates quality.”
Perhaps Lemonade’s greatest accomplishment so far is its ability to inspire the development of insurtech itself. Well received by customers because of its strong AI platform and well-priced policy offerings, the company could be taken as emblematic of the new, digitally-driven dynamic gripping the modern insurance industry.
Nonetheless, there are still hurdles for Lemonade to overcome, not least of which is its struggle to turn a profit. An from Nasdaq posits that, no matter how popular it is with the millennial generation, the company will need to remedy shortcomings in its underwriting to remain viable in the long-term.
With a net loss ratio of 70% recorded in Q2 of 2020 - which Nasdaq considers “exorbitantly high” - the problem could be attributable to factors such as poor product pricing or flawed customer screening. Whatever the case, Lemonade urgently needs to do what it does best: find an innovative solution to a seemingly intractable problem.
Image credit: Lemonade
Akur8’s US$30mn Series B to fuel US and APAC expansion
Still a relatively new company in the sector, Akur8’s progress since it was founded in 2018 has been characterised by cutting-edge tech, strategic growth, and a highly personable approach that clearly demonstrates the youthful innovation of insurtech itself.
The company strives to embody four key values:
- Challenging a status quo that doesn’t benefit customers
- “Disrupt the known, organise the unknown”
- Provide artificial intelligence (AI) tech with a distinctly human edge
- Create solutions that will endure the test of time
At the heart of Akur8’s business is its Transparent AI solution. Capable of empowering actuaries and pricing teams through better, faster decision making, the insurtech touts it as “the only solution that automates rate modeling while keeping full transparency and control.”
Transforming insurance pricing
In just two years, Akur8 has acquired over 30 customers in 10 countries - including high-profile insurers like Munich Re, Tokio Marine Kiln, AXA, and Generali - and established additional offices in London and New York. Now, the company is keen to develop its business in the US’ verdant insurance market and build its presence in APAC.
“The BlackFin team is thrilled to see Akur8 continue to spread its wings and deploy its next generation pricing platform across insurance carriers worldwide,” said Julien Creuzé, Partner. “We have built a great relationship with the Akur8 management team and it’s a pleasure to welcome new investors and continue this journey with them.”
Guillaume Beraud-Sudreau, Co-Founder and Chief Actuary at Akur8, added, “We are humbled by the trust that our clients and investors have placed in Akur8. Building the future of insurance pricing powered by Transparent AI has been our goal since the first day of R&D. Now this vision has become reality and we can’t wait to accelerate our growth to become the global reference in insurance pricing.”
Cover image source: Akur8