I just finished watching several interviews of the CEO of Lemonade. As I believe when you invest in a company you’re ultimately investing in the CEO to properly manage your investment.
I’m pretty impressed so far. As I was watching his interviews he seemed very similar to Bezos, Musk, Nadella, Jobs etc... In terms of intelligence, mental clarity and the ability to articulate ideas.
Another plus is that he says his primary focus is on providing the best customer experience as possible. Which aligns with Bezos’ mantra “At the end of the day there’s no misalignment between obsessive attention to customer experience and shareholder interest”.
The Lemonade App currently has a near perfect rating (4.9 stars) in the App Store. And the best part is that he’s competing against companies whose goal is to do everything in their power to screw customers over.
One point that I thought was a negative at first was the social good aspect of the company. Donating 75% of the write offs to charity. But this actually brilliantly serves two points. To prevent customers from embellishing claims (they’re screwing the charity they picked over). And to discourage his own company from being incentivized towards denying or delaying claims. Thus keeping focus on customer experience.
Overall even when you discard buzzwords such as “AI”, “collecting 100x more data than the nearest competitor” and “using first principles to create and structure an insurance company that has never existed before”.
This has the makings of a 10X company for sure. Just due to the fact that the CEO is brilliant, the company is focused purely on customer experience and their competition is focused on pretty much the opposite.
Currently Lemonade has a market cap of 3 billion. The market cap of insurance companies like All State and Progressive have market caps of 30-60 billion.
Submitted October 02, 2020 at 06:54PM by Okmanl https://ift.tt/2SmFKdu
