Lemonade Inc. — a company that has started out by selling renters and homeowners insurance through mobile devices — says in its registration statement for an initial public offering (IPO) that it's thinking about offering life insurance.
The New York-based insurer says it already owners a life insurance agency, Lemonade Life Insurance Agency LLC of Delaware.
Resources
- Links to documents related to the Lemonade IPO are available here.
- A Lemonade profile is available here.
"As our customers move up the economic ladder and through lifecycle events, their insurance needs evolve to higher value products: renters continuously acquire more property and frequently upgrade to successively larger homes," Lemonade says in the registration statement. "Growing households often need life insurance or pet insurance. These progressions regularly trigger orders of magnitude jumps in insurance premiums. We aim to provide an unmatched user experience in order to retain customers throughout their lifespan, expanding their lifetime value without incurring any incremental costs of acquisition."
Lemonade contends that it will be better-suited to sell to younger consumers than traditional insurers are.
"Companies built on human brokers and claims agents have many strengths, no doubt, but appealing to millennials and Gen Zers is not chief among them," the company says.
Lemonade notes, however, that starting to sell life insurance and other products, such as pet insurance, would subject the company to additional regulatory requirements and regulatory scrutiny.
Organizers started the company in 2015, with the goal of using modern technology to create an insurance provider that would be easier for consumers to use.
The organizers hope to raise up to $100 million through the IPO, and list the company's shares on the New York State Exchange, with the stock symbol LMND.