Tesla Invites Actuaries to Help It Create a ‘Revolutionary’ Insurance Company

By | July 24, 2020

  • July 24, 2020 at 8:08 pm
    Observor says:
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    The California Private Passenger Automobile rate regulation spurred by Proposition 103 will hinder the process.

  • July 25, 2020 at 12:00 pm
    Homeboycartel says:
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    So, how does the insurer also writing the software And building the hardware respond to claims alleging software and/or hardware malfunction contributed to the loss? 1-2 large claims and verdicts on this plain may make his endeavors less palatable to shareholders.

    • July 28, 2020 at 11:03 am
      TheUnderwriter says:
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      That’s a great question. I’m curious to see the shift in expertise within the industry. Will auto claims adjusters need to gain GL (product defect)/cyber/cyber liability knowledge in order to assess these incidents? Are insurance carriers hiring for self-driving vehicle software expertise?

  • July 25, 2020 at 10:32 pm
    knowall says:
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    I wonder if credit/consumer scoring will be used by Tesla?

    According to the chart I saw last week Tesla lost money on the latest operations report but made a few hundred million selling carbon credits, or something like that.

  • July 26, 2020 at 6:41 pm
    Observor says:
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    The valuation of the stock is interesting.

    One analyst said that the carbon credits they sell to other auto makers is a short term revenue stream since these competitors currently sell more gas powered vehicles than electric. This person believed the real value in the company was their ability to sell their technology to companies in other industries.

    Heavy insurance regulation for private passenger auto insurance may prove to be an obstacle to short term success in that industry. Proposition 103 will need to be eliminated or modified to allow for innovation in predictive modeling.

  • July 27, 2020 at 9:29 am
    Tiger88 says:
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    So, it will be a company that runs out of power after 2-3 months of use and “bricks” in the middle of a claim? Just askin’

  • July 27, 2020 at 11:55 am
    RO says:
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    Humm..sorta like the fox guarding the hen house. 😒

  • July 27, 2020 at 12:14 pm
    TimeMachine says:
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    There’s a lot of people who told him he couldn’t launch rockets into space or complete with big auto manufactures. While there are barriers to entry and complexity involved I wouldn’t bet against a company this disruptive and innovative.

    • July 29, 2020 at 10:24 am
      UW says:
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      Creating super skinny tunnels to drive in was also a huge innivation.

      This guy is a joke. NASA could have easily created what he did with Space X if we funded them instead of subsidizing this clown to do it. He’s a glorified government contractor, that’s it. His cars and projects miss every single goal he lays out. Where are those fully automated cars that have been 6 months away for like a decade now?

      • July 31, 2020 at 3:08 pm
        tom says:
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        “His cars and projects miss every single goal he lays out.” Not True. Based on recent facts they don’t miss. The China plant was built in just over a year and is pumping out cars. The latest car, the Model Y, was released months ahead of schedule. As the company gains experience they are executing better. Granted, autonomous vehicles were oversold across the auto industry, but rest assured Tesla will probably get it to scale first.

        “NASA could have easily created what he did…” False…the shuttle program was supposed to be a low cost solution that failed to deliver. Space X risked everything and developed a reusable rocket to ultimately make space cost-effective. NASA wan’t able to build the new tech and needed private investment help. For comparisons sake, Bezos can’t get a rocket past sub-orbital so again I ask…Do you really want to bet against Tesla/Musk???

  • July 27, 2020 at 1:47 pm
    MJB says:
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    The problem is his cars are expensive to repair. And it takes forever. His solution is to have a back seat techno-cop watching your every move. Not sure Tesla drivers will want that.

  • July 27, 2020 at 10:36 pm
    knowall says:
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    One thing that perplexes me a little is aren’t his vehicles, for the most part, sedans? The rest of the industry has the crossovers/suvs, I prefer a sedan myself and was sorry to see Chevy stop making the Impala etc… Of course, I’m behind the times in my mid 50s

  • July 28, 2020 at 2:08 pm
    Augustine says:
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    He will end up building…. wait for it… it is revolutionary… A regular, old fashioned, insurance company.

  • July 29, 2020 at 12:03 pm
    Tammy Lynch says:
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    This is awesome! This is not about the car itself, this is about an insurance product that could be adjusted based on driving. It is really cool to see people thinking outside of the box when it comes to insurance vs just adding new discounts. I look forward to hearing more about the development of this company and the products.

  • July 29, 2020 at 1:58 pm
    Observor says:
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    The interesting question is whether they would insure non-Tesla vehicles which may not produce the information they need to navigate a more refined rating plan.

  • July 29, 2020 at 4:34 pm
    Marc says:
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    To answer the question on covering other vehicles, Currently in CA, I was not able to insure my second vehicle (non-tesla) through Tesla’s insurance platform and was sourced to a third-party insurance broker

  • July 29, 2020 at 5:57 pm
    Observor says:
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    Hi Marc: That is interesting in that Proposition 103 requires that all insurance companies writing in the state (California) must accept any drivers with an acceptable driving record. They are able conduct business in this way while all my previous employers who wrote private passenger auto could not avoid risks with the acceptable driving record.

  • August 3, 2020 at 11:54 am
    An experienced Actuary says:
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    I have 17 years experience in actuarial pricing. I have great passion in revolution and working on something new and cutting edge. I was wondering how to reach out to him and express the interest?

    • August 4, 2020 at 1:27 pm
      Elon says:
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      I read all articles about myself, so you’re in luck!

  • August 6, 2020 at 6:00 pm
    Mike says:
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    LOL! What does Elon think predictive models do? There is no way to validate an insurance model other than comparing predicted models to actual losses (i.e., ones that have happened = historical losses = looking in the rearview mirror…).



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