“Forget everything you know about insurance,” was the brash tagline on a banner adorning the New York Stock Exchange when Lemonade went public in July 2020. The message captured the confidence that propelled the US insurance start-up and its peers, including Hippo and Root, on to the stock market at valuations far above those of more established peers.
The self-styled disrupters had a beguiling pitch to investors: our technology can track risks in real time; cut the number of insurance claims by anticipating incidents such as leaks; and speed up the processing of paperwork. The result, they said, was businesses that would ultimately outperform older rivals.
But two years on from its Wall Street debut, Lemonade, along with Hippo and Root, are among the biggest casualties of a brutal rout in tech stocks, as rising interest rates prompt investors to ditch high-growth companies in favour of those that generate reliable profits.
Read the full story on the Financial Times here