Lighthouse #14
Curating the best insurance, insurtech, innovation and leadership content for you.
Ron Arnold
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There’s always an element of chance and you must be willing to live with that element. If you insist on certainty, you will paralyze yourself.
J.P. Getty
Tesla growing: For those following Tesla’s foray into insurance this article is well worth a read. State National, which supports Tesla’s insurance program in California, recorded $48 million in direct premiums through #data #future TESLA INSURANCE SERVICES, INC. in 2020. In 2021, that sum more than doubled to $112 million. Tesla Insurance Services was State National’s 4th-largest MGA in 2021, and had the biggest percentage and premium increase between 2020 and 2021. Not a huge book by US standards. And we know it is not all about premium, growing profitably can be tough. Of course, Tesla claims it has certain advantages - distribution, connected car data, repair insights…. A journey to watch…particulary with Musk putting it out there in the October 2020 earnings call - insurance might account for 30% to 40% of Tesla’s auto business in the future! Source: Coverager
Tesla Insurance: A product teardown: Good break down of what Tesla is up to with their insurance. Source: Florian Graillot
By Miles launches “connect mobility platform”: By Miles has launched its "Connect platform". The platform allows for the connection to major car manufacturers Mercedes-Benz and Ford – with the intention of adding more brands. The new platform, allows drivers of connected cars (internet connected vehicles with in-built ability to communicate with systems outside the car) to connect their pay-by-mile insurance policy directly from their car. No extra hardware is required! In the UK, nearly nine in 10 (85%) vehicles registered this year have connected capability and this is expected to cover every new car on UK roads by 2026. By Miles analysis suggests that drivers who cover under 7,000 miles per year could save an average over £300. By comparison with global developments, connected car type offers in Australia have tended to stutter. It is noteworthy that most insurers are now asking customers to estimate the kilometres travelled as part of the quoting process and some require information on what the car is used for eg work commuting, education, local trips. Nonetheless, connected car type offers have not really gained traction. So what is happening here:
> Are we just slow?
> Is it difficult for incumbents to re-calibrate their books?
> Is there no demand, is it a 'niche play'?
> Is it just a matter of time?
Source: bymiles
Cover Genius with another embedded partnership: Cover Genius has announed another interesting embedded insurance propostion, this time in India with Pepperfry. Pepperfry is an Indian based e-commerce furniture and home goods company. The partnership will enable personalised insurance offerings as part of the home goods buying process. According to Cover Genius research, 60%of customers prefer to buy protection from their favourite online retailers. The arrangement further extends Cover Genius’ impressive partnership stable that includes - Booking Holdings, owner of Booking.com and Agoda, Ola, Intuit, Skyscanner, and Descartes ShipRush…and also activity with Amazon, Flipkart, eBay and Shopee. All up Cover Genius is licensed or authorized to co-create insurance in over 60 countries and all 50 US States. Source: Business Standard
Smarter travel insurance: This is pretty cool. Global insurance company MAPFRE has partnered with travel risk intelligence company Riskline. The plan is to incorporate location specific risk information into its travel insurance underwriting process. MAPFRE headquartered in Spain, will use Riskline’s real-time alerts, country and regional risk assessments to better inform their decisions for travel insurance policies. Riskline covers 225+ regions and countries around the world and includes safety and travel health information spanning political and security crises, travel disruptions, major upcoming events to help information location risk.
Source; Travel Daily News
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