The bill follows similar legislation proposed in six other states.
Insurtechs Lemonade and Metromile both made operating losses in 2017 despite a spike in earned premiums. Lemonade saw its losses balloon to $15.7m from $1.9m in 2016. The start-up saw an underwriting loss of $15.8m, up eight-fold from 2016. In the first quarter of 2018, Lemonade’s earnings were down by more than half compared with last year. The firm saw its underwriting losses triple, however. Analysts have poured scorn on claims the companies' tech-driven business models will disrupt insurance, estimating the cost of running a similar firm was close to $15m annually.