A leading company aimed at virtual transformation.
Despite a complicated deployment from its first attempt, Tesla is contemplating a complete understanding of the insurance product collected in its cars to offer less expensive premiums than classic insurers.
“We are building a wonderful company, like a big insurance company,” CEO Elon Musk told investors in calling for Tesla’s second quarter earnings convention after delivering a fourth consecutive successful term, its longest streak in the company’s history.
“Ultimately, where we need to get to Tesla Insurance is to use the knowledge captured in the car, in the user’s driving profile in the car, evaluate correlations and the chances of turning fate and strength, and then compare a premium on a monthly basis for that customer,” he said.
Musk’s interest in providing a less-loved insurance product to Tesla owners is not new. For years, drivers have complained about high costs, basically due to more expensive car maintenance. The company first spoke about insurance in April 2019, before launching a product in California a few months later.
This pitch, however, was marred by problems.
Just hours after its launch, the site got rid of an “algorithm update”. Some consumers who were able to get quotes before the break reported that they received higher rates than their third-party insurance plans, despite Tesla’s proposal to cut rates by up to 20%. This product “version 0.9”, said Musk.
Connected cars aren’t a new trend in insurance, Tesla probably just has more on the habit of driving force and protective habits.
“The accuracy of your data is at the heart of insurance competitiveness,” Musk said. “For example, do you have to compare other people who look statistically in the rearview mirror? Or can you compare other people individually, long-term with smart projections, and tell the driving force that, how it can decrease their movements, what moves they can take to decrease their insurance.”
By the end of the year, Musk said, Tesla hopes to release insurance in a handful of U.S. states. With the aim of proposing national plans.
“I would love to have very full act actuaries for life, particularly,” he said. “I have wonderful respect for the actuarial profession. Your boys are perfect in math. Join Tesla, especially if you need to make a difference, and you’re upset about the slowness of the industry. Tesla is the position to be. I need revolutionary actuaries.”