Interview: Daniel Schreiber | $LMND CEO and Co-Founder

Daniel Schreiber joins Emmet Peppers and Matt Smith to discuss how Lemonade is disrupting the insurance industry, his role as CEO, the MetroMile acquisition, and more.
Daniel Schreiber: / daschreiber
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[@senderovski1085]

I work as a solution architect at a global insurance company. Legacy still has many mainframe systems based on COBOL. The digital transformation towards SaaS and cloud compute like AWS will take multiple years because of the complex IT and products. Lemonade had such a big advantage starting from scratch with a fully integrated stack.

[@PaperBagInvest]

Great interview. Appreciate Daniel’s articulation of Lemonade’s up front acquisition costs vs legacy. Also helpful to hear his answer about metromile’s poor loss ratios.

[@entwine]

Daniel is truly impressive and I think he got even better at explaining Lemonade. Most of your questions were quite softball and it's a shame: I really like how Daniel answers the hard ones, very calmly and clearly -- like a teacher, not a salesman.

[@zuma404]

Thanks for sharing Goodsoil!

[@torgnyandersson403]

Amazing interview! Thanks for bringing all of this to us lowly retail investors!

[@michaelhunter1911]

Awesome! Thanks for the interview guys

[@niking92]

Thanks Daniel!! Great interview!

[@georgeholloway3981]

This was a stunning interview, well done!

[@erifra5606]

Thanks!

[@Sush1Trader]

Great interview

[@chloetee9302]

great interview!!

[@markpaddey2015]

Awesome interview, thanks very much!

[@gaoshikui88]

I wonder if wall st watches this stuff or if us retail plebs actually have some advantage over them in this factor

[@binkding]

when will car and house insurance be available in east bay, ca?

[@TypoDiabetes]

just noticed Emmet's pic of Elon in the background 😂

[@brave3630]

maybe far out in the future they will interview Elon and there will be a picture of Daniel in the backgroud !

[@michaelhunter1911]

Bright guy - I’m a believer

[@markuseklund6992]

Wowowowow 🎉🎉🎉😊

[@off-piste2384]

Can anyone confirm that home insurance agents typically take 15-20 % of the premia in perpetuity?

[@InvestingCatalysts]

he describes how great it is to NOT use agents and get a long term better deal. The only trouble is, he is an AGENT! He sells off the actual underwriting and the claims settlement to others. He is just a front end agent selling the underwriting later. As opposed to traditional agent paid a commission by the eventual underwriter. He never explains why his ai or tech is better than the ai and tech of progressive, geico or now Telsa. All the profit is in auto insurance and he has no way into it, even after buying metro mile. Even when Emmett forces the issue, he clearly isn't excited to talk about it. He couches the coming losses with "time will tell". Geico and Progressive have huge actuarial systems managing auto risk by demographics, geographics, credit rating, etc. He acts like they aren't doing this. Then he claims telematics have been around for 20 years. Maybe the technology, but not for the masses in our phones or cars. Misinformation and outright disinformation. He sounds smarter and slicker than Trevor Milton, by using word sandwiches like "system archeology", but not by much. Its just too bad that the puts on this bubble are so darn expensive. Apparently, alot of options traders are way ahead of me on this one.

[@larryiw3009]

here in israel we re start up nation we also produced masters of storytelling like Schreiber and adam Neumann

[@gaoshikui88]

A third of their car policies. You heard the slip!! Load up on the November call options boys

[@arrangray4954]

When did they say this?

[@larryiw3009]

their average premium is under $300 the avg homeowners policy is $1200+.one claim for a stolen MacBook is a loss of 5 years of premium they can never operate a real homeowners insurance biz with bots".your bot can't process claims from a hurricane ij Florida.Those stodgy legacy companies had adjusters on the scene immediately paying out initial claims

[@maxpayne7419]

Lemonade seems to have the customer experience right. The problem is they have not been able to get the important profitability part right. It is very easy to sell cheap insurance. Anyone can do that. It is very hard though to select the right customers, price them correctly, handle their claims effectively, and retain the best ones. And especially when you’re up against giant insurer competitors who have massive amounts of data and the scale they need to crush a little company like Lemonade. Is lemonade getting the customers the successful insurers do not want? Buyer beware.

[@maxpayne7419]

Funniest part of the interview… Daniel is talking pie in the sky stuff about data theory and he’s all excited… and then the question about Metromile comes and the mood immediately shifts as he comes back down to earth where he is losing massive sums of money on car insurance with no end in sight.

[@gaoshikui88]

Do people in America really have to call someone to buy home insurance??? This can't be for real...

[@larryiw3009]

congrats to Daniel on making $millions from sell his lemonade stock including a secondary offering over $100.....as for fanboys like Emmett and other finfluencers...not so much fun you need a 500% gain just to get to the level where Daniel and Shai sold you shares

[@larryiw3009]

wait till you seen the hurricane and wildfire claims in the next earnings(loss) report

[@vince9072]

Thanks daniel @lemonade to the moon

[@danchatka8613]

Schreiber is as knowledgeable about the insurance business and AI, as Alex Mashinsky was about Celsius. The test of an insurance company is remaining solvent while paying off claims resulting from multiple simultaneous national/global catastrophies. If you want to understand the insurance industry, read Berkshire Hathaway's shareholder letters, in which Warren Buffet explains the mechanics and perils of the insurance industry.

[@arrangray4954]

You mean your more knowledgeable than the CEO of a billion dollar insurance company that’s been up and running for 6 years?

[@danchatka8613]

@@arrangray4954 Sorry to hear about your difficulty with reading comprehension. Don't be embarrassed. Many people have learning disabilities. Try reading my comment a few more times. The meaning will become more clear each time. If you're still confused, read Berkshire Hathaway annual sharehold letters as suggested. Eventually you'll figure it out. Good luck.

[@larryiw3009]

check metromiles loan loss ratio...it's over 100

[@larryiw3009]

Daniel comes from marketing at SanDisk and at a failed startup.He is a great articulate markete r but the numbers don't lie the business is a disaster with no path to profitability. most of the business they write with avg premium under$350 is stuff those '"boring legacy companies" don't want: terrible risk/return.

[@dogfacedponysoldier87]

OFFER LEMONAIDE IN KENTUCKY. PLEASE ! ! !

[@trave9893]

Just bought LMND and anticipate a 50% chance of 100x over the next 20 years. Or bankrupt😂. Good risk reward though.

[@NoName-us3nb]

I’m bullish on LMND and love Daniel. My only qualm is that insurance is not an exciting product like say a Tesla car is. With a car, a person enjoys it as soon as they pay for it. And then perhaps tell their friends about it etc.. With insurance, you first pay and may never even enjoy the simplicity of making a claim and being paid out. And even then, it may not be very exciting to the point where you would tell your friends about it. The word of mouth element is more minimal. And so LMND is highly reliant on Paid Ads, Organic Search, and Affiliate Marketing. I cede that between it’s simplicity and charitable givings, LMND has better word of mouth potential then legacy insurance. My point is that growth will likely be very slow, especially compared to an Apple or a Tesla, due to lack of hype.

[@maxpayne7419]

Master salesman. And my BS detector is sounding off repeatedly during this and every interview Daniel does.

[@vittoriobenedet2221]

It seems everything great. I suggest the audience looking for w buffet geico and telematic on youtube . There is a video from 9 month ago