Lemonade to offer car insurance

Daniel Schreiber and Shai Wininger

The digital insurance company started out offering home insurance and has since added pet insurance and life insurance.

Digital insurance company Lemonade (NYSE: LMND) is expanding into the car insurance market. The company reported today that it is launching "Lemonade Car" during the year and has opened early registration for customers. Lemonade said that this marks the company’s third expansion into a major new insurance category in less than 12 months. The company started out offering home insurance and has since added pet insurance and life insurance.

Lemonade adds that the US car insurance market is worth an estimated $300 billion annually and says that a large number of its customers are car owners who spend an estimated $1 billion on car insurance each year.

Lemonade cofounder and COO Shai Wininger said, "We’re seeing an overwhelming demand for a Lemonade car insurance product from our customers. And so, since last year, a large part of our team has been working on what we believe will become one of the best car insurance products on the market. Lemonade Car will use technology to handle emergencies and pay claims fast, will offer great prices to safe drivers, and will be especially attractive to drivers of EVs and environment-friendly cars."

Lemonade was founded by Wininger and CEO Daniel Schreiber. The company, founded in Israel, bases its operations on insurance powered by big data and artificial intelligence.

The company's share price fell 4.30% on the NYSE yesterday to $84.07, giving a market cap of $5.384 billion. The company's share price has lost 54% since the start of 2021 but is still 190% higher than at its IPO last summer.

Published by Globes, Israel business news - en.globes.co.il - on April 20, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Daniel Schreiber and Shai Wininger
Daniel Schreiber and Shai Wininger
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