Insurance-technology stock Lemonade (NYSE:LMND) has been on fire lately. Since the beginning of November, shares of the rapidly growing insurer have gained more than 85%. However, it's important for investors to know that the company's market cap is still rather small compared to its massive market opportunity. Insurance is a multitrillion-dollar market opportunity that's ripe for disruption. 

In this Fool Live video clip from the Nov. 30 Industry Focus show, Fool.com contributor Matt Frankel, CFP, and host Jason Moser discuss why Lemonade could still be in the very early chapters of its growth story.

Jason Moser: Um... Jason, Matt, are you willing to share an update on your thoughts about Lemonade? Thanks. Have you done any looking at Lemonade lately Mr. shareholder?

Matt Frankel: Yeah, I checked out their recent earnings -- their growth is still pretty impressive. No big surprises, and I mean that in the best way. Their growth is still pretty impressive year over year, no big new verticals. I know they expanded geographically in Europe a little bit. I want to see a sustained growth. I would like to see them move beyond homeowners and renters -- that's the long-term play here. As far as it's a homeowner's and renter's insurance company, there's no way you can justify even the current valuation. The big play is, if they add other lines of insurance, cross-selling that to their existing customers and then they have customers for life because homeowners and renter's insurance is something you always need -- one or the other, for the most part. So that's a customer for life and it should keep growing and growing and growing. I don't like it as much as I did when it was in the 40s, obviously, because it's about $70 right now. But I still love Lemonade. I added recently -- not too recently -- that's why I'm allowed to talk about it right now. But I'm planning on holding and I think it's a very interesting growth opportunity. The fact that there's so many companies ripping off Lemonade right now, it's like Kool Aid Insurance Company or something like that. But there's a bunch of these insurance-tech companies that just came out of the woodwork, and imitation is sincerest form of flattery.

Moser: Yeah. Who's your insurance company? A and W. It's funny. I think with insurance, the real focus for a company like Lemonade, particularly one that's mission-driven like that, which I think is great. I think that's something that resonates more and more with consumers, particularly younger generations coming up. It's going to be about acquiring new customers. People are probably lured to jump in there and switch insurance companies and switch banks because it requires some work, particularly if you have automatic payments and whatnot or if you do stick with an insurer long enough. I just got an email from Progressive the other day Matt. They said, we just hit their highest loyalty level that they even offer. We've been with Progressive for something, I don't know, probably 20 years now because, essentially, we've been with them for about as long as we have been married, and so they send us our insurance bill every six months for car insurance and we pay it, and I think we actually have home insurance with them now, too, because you get good rates and whatnot. There are benefits that come with loyalty. I think longer term you could see a company like Lemonade really being able to pull on that lever and exercise that customer loyalty. I think there's a lot of potential there.

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