Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

The fair value of each option granted for the nine months ended September 30, 2020 and 2019 is estimated on the date of grant using the Black-Scholes model based on the following assumptions:


	Nine Months Ended September 30,
	2020	2019
Weighted average expected term (years)	6.1	6.1
Risk-free interest rate	0.8%	1.7%
Volatility	40%	45%
Expected dividend yield	0%	0%

Stock options activity

The following table summarizes activity of stock options ($ in millions, except for option and average amounts):


	Number of Options	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2019	4,048,802	$	13.27	8.8	$	42.2
Granted	968,280	30.44
Exercised	(92,157)	3.77
Cancelled	(110,001)	20.87
Outstanding as of September 30, 2020	4,814,924	$	16.73	8.4	$	158.8

Options exercisable as of September 30, 2020	1,698,568	$	8.72	7.5	$	69.6
Options vested and expected to vest as of September 30, 2020	4,814,924	$	16.73	8.4	$	158.8

Stock-based compensation expense

Stock-based compensation expense was classified in the condensed consolidated statements of operations as follows ($ in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Loss and loss adjustment expense, net	$	0.1	$	—	$	0.2	$	—
Other insurance expense	0.1		0.2		0.5		0.4
Sales and marketing	0.8		0.3		2.1		0.5
Technology development	0.8		0.7		2.1		0.8
General and administrative	0.9		0.3		2.4		0.6
Total stock-based compensation expense	$	2.7	$	1.5	$	7.3	$	2.3