For several years, the insurance industry has been anticipating a hardening of the reinsurance market, which last occurred in the early to mid-2000s. Soft market conditions have prevailed for nearly 15 years until 2020. The COVID-19 pandemic was arguably the final harbinger for what appears to be a hardening of the reinsurance market.
Founded in 2015, American insurer 'Lemonade' has rapidly reached a market capitalisation of $8.5bn and a price to sales ratio of 71.63. This compares to a price to sales ratio of 2.06 for Berkshire Hathaway, the largest global insurer by market capitalisation as at 2 February 2021. Joseph Hoang-Luu, General Insurance Editor of Actuaries Digital, analyses Lemonade's growth and presence in the insurance space.