Lemonade (NYSE: LMND), the digital insurance company powered by AI and social impact, has passed $1 billion of In Force Premium (IFP).
According to the announcement from Lemonade, this marks a significant milestone for the Insurtech company, coming just 8.5 years after selling its first policy, and “reflecting a ~150% compound annual growth rate.”
This steady growth was enabled by Lemonade’s investment in innovative technology, as well as its “broad product portfolio, deep geographic reach, and a persistent focus on building the best customer experience.”
Shai Wininger, Lemonade President and cofounder remarked:
“Surpassing $1B in IFP with positive free cash flow and a healthy loss ratio is an important milestone for us. We’ll take a minute to celebrate today’s achievement, and get back to work on our journey to our next 10x.”
As laid out at the recent Investor Day, Lemonade Car will play “a key role in the company’s accelerating growth plan.”
The company also announced the launch of Lemonade Car in Colorado beginning tomorrow, “bringing Lemonade’s availability to roughly 40% of the US car insurance market.”
Coloradans reportedly spend about “$7B on car insurance annually, with Lemonade’s existing Colorado customers spending hundreds of millions a year on car insurance, making the state a promising market for Lemonade Car.”
As noted in the update, Lemonade offers “renters, homeowners, car, pet, and life insurance.”
Powered by artificial intelligence (AI) as well as “social impact,” Lemonade’s full stack insurance carriers in the US and the EU reportedly “replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything.”
A Certified B-Corp, Lemonade explains that it gives “unused premiums to nonprofits selected by its community, during its annual Giveback.”
As mentioned in the announcement from the Insurtech firm, Lemonade is currently available in the United St, Germany, the Netherlands, France, and the UK, and continues to expand globally.”