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App-based insurtech firm Lemonade claims to have snapped up the largest share of first-time insurance buyers in the New York renters’ market this year.
In a media release, Lemonade released survey results announcing that it had “overtaken Allstate, GEICO, Farmers, Liberty Mutual, Progressive, State Farm, USAA and all other legacy insurers among first-time buyers of renters’ insurance in New York state.”
While its overall market share of New York renters’ insurance is just 4%, the upstart insurer claims to have picked up more than a quarter of all first-time insurance buyers in New York this year.
“The first of two Google surveys compared Lemonade’s market share in renters’ insurance to that of other leading insurers, and pegged Lemonade’s overall market share at 4.2% (E: +2.1% / -1.4%),” the Lemonade release said.
“For context: the national average market share amongst the top 10 homeowners’ insurance companies is 6.3%, and they’ve been in business, on average, for 104 years. Lemonade launched in September.
“The second survey … proceeded to break it down by when respondents first bought insurance. About 88% bought their first policy before Lemonade launched … However, among the 12% who entered the market this year, Lemonade commands a 27.6% share (E:+12.6/-9.8).”
First-time insurance buyers appear to be Lemonade’s target market. In a statement earlier this month, during which the company took several digs at its traditional market competitors, Lemonade co-founder Shai Wininger stated that “78% of our customers are between the ages of 25-45.” In the statement yesterday, Lemonade stated: “110 million Americans rent their home, including 75% of under 35-year-olds, making this segment one of the largest and fastest growing in the industry.”
