2023-07-24 11:45:00 ET
Popular insurance technology company Lemonade (NYSE: LMND) is finally finding favor with investors again after several years of disappointments. Not only is growth still strong, but there have also been real indications that it has a viable model as it moves toward net profitability. Lemonade stock is up 63% this year, but it's still 87% off its high from 2021.
Just when things were looking good, Lemonade announced it would start using "synthetic agents" to promote its business. I was fooled by that statement, and in case you were, too, let me clarify what this actually means.
Lemonade operates a completely digital business that relies on artificial intelligence and chatbots to onboard customers and evaluate claims. It has heavy marketing expenses to reach new customers, but there has never been any kind of human agent involved in the process. Claims filing can reach a human when the system can't evaluate it on its own.
For further details see:
Lemonade Just Made a Confusing Announcement. Let's Set the Record Straight