> So we want to give that 5-15% back in the good years where we don't need it to pay claims.
Isn't that what Lemonade initially tried to do? They ended up having to go to their charity angle because of rebate laws. How do you think you are different? Mutuals do not seem to have a competitive advantage when it comes to Loss Ratios...what is your thesis exactly? Not to mention Lemonade is running at almost 3x their filed Loss Ratio now.
End of the day, personal lines is a very competitive market, where insurers are happy to get a net ~95% combined ratio (including CAT). Why would you think you will do better?
Isn't that what Lemonade initially tried to do? They ended up having to go to their charity angle because of rebate laws. How do you think you are different? Mutuals do not seem to have a competitive advantage when it comes to Loss Ratios...what is your thesis exactly? Not to mention Lemonade is running at almost 3x their filed Loss Ratio now.
End of the day, personal lines is a very competitive market, where insurers are happy to get a net ~95% combined ratio (including CAT). Why would you think you will do better?