Tesla InsurTech

Tesla InsurTech
  • Just as Shopify is going into digital banking, Tesla has recently started offering car insurance.
  • Both businesses look to be providing new financial products as value add to their customers (vs forays into fintech) using data for operations and risk assessment (eg. insurers aren't quite sure yet how to cover EVs and semi-autonomous driving).
  • Tesla's vast amounts of vehicle and driver telemetry data should allow it to price insurance competitively and yet make good margins. GM is getting into the business too.
  • Having data is such an immense market advantage that, ultimately, regulators may request automakers provide aggregated data to insurers to even the playing field and to avoid situations where automakers cherry pick low risk drivers and pass the rest to insurers.
  • Automakers can still profit by charging for data. Or by getting a commission for each driver insured or policy sold or renewed.

Latest InsurTech Startups
  • At-Bay - Ransomware and tech errors insurance
  • Caura - One app for car parking, insurance, servicing
  • Next - Small business insurance
  • Hippo - Home insurance for working-from-home
  • BoltTech - InsurTech exchange
  • Zego - Insurance for gig drivers, riders and fleets