Throw Your Money at Insurtech
Make r/insurtechbets a thing
Ah, an investment portfolio. A hurdle you need to pass to fully cross into adulthood (say a choice few). But what to invest in? You might be checking r/wallstreetbets on the daily, leaning toward something hot like Tesla or Apple or you might be one of those generous benefactor types that throws a little bit of money at a dozen pre-prototype startups. Maybe even pre-proof of concept startups.
Ambitious.
Luckily, there’s an industry to invest in that should satisfy all Millennial sorts. What’s that? Put your acorns into insurtech.
For those of you who may not realize, the word “insurtech” stems from the Latin words “insurance”and “tech”. This lovely mashup takes form in popular companies such as Lemonade and Root which recently had really banging IPOs.
Read on.
Lemonade Insurance
Notorious for Taylor Swifting their Instagram and re-emerging with artsy campaigns, it’s everyone’s favorite hot pink provider of homeowners, renters, and pet insurance.
Back in July, their public offering debut ranked as the strongest in 2020. Shares debuted at a strong pricing of $29 — then skyrocketed by 144% to a high of $70.80. They sold 11 million shares and quickly reached a valuation of $3.93 billion.
Not too shabby.
Root Insurance
This one is a bit more low-key than Lemonade (maybe cause of the color choices?) — but you should know about it. With the catchytagline“Good drivers save more”,the Root system starts with you downloading the app. The app then gathers your driving data over a few weeks and gives you a personalized quote. Which is awesome.
What’s even more awesome is that their IPO crushed Lemonade’s. The big number they quickly got valued at? $6.7 billion. Just about twice what Lemonade was valued.
Okay. But Why Should I Invest?
Sure. Fair question. Maybe ask all the investment funds that dropped tons of dolla dolla bills into insurtech companies this year.
Insurance has been around for hundreds of years and consistently proven to be a stable industry. Plus, what saved our last shreds of sanity during the pandemic? Tech. As we’re propelled forward into an increasingly digital age, it makes sense for an old timer industry to embrace digital transformation. Especially when everyone’s stuck inside and tech is what’s keeping most of us together.
So drop them dolla dolla bills.
