Irked by the high premium required to insure Tesla cars, chief executive Elon Musk has said that the company intends to become an insurer in its own right to reduce the cost of insurance, the Financial Times reports.
The company said that using "anonymised fleet data" to evaluate risks could result in lower rates of up to 20% and even up to 30% in some cases. In my opinion this is preferable to case-by-case individualised data harvesting systems (e.g. apps) used by some traditional insurance providers as it would constitute less of an invasion of privacy.
[Elon Musk] suggested that Tesla’s access to data captured by the cars themselves would give the company an edge in pricing over third-party insurers: “We essentially have a substantial . . . information arbitrage opportunity where we have direct knowledge of the risk profile of customers and basically the car.”