On the one hand, we have a modern, specialised economy. So far, car manufacturers have avoided dealing with insurance and insurers have avoided producing cars.
On the other hand, Tesla is demonstrating a creative use of telematics capabilities that could serve as a model for other industries.
Today however, it’s hard to imagine a product other than a car that would lend itself so well to telematics. The manufacturer’s data gives it a significant knowledge advantage over other players, and user behaviour has a significant influence on the level of risk.
Telematics-based laptop insurance? What about home insurance? Manufacturers of a wide range of goods are unlikely to end cooperation with their long-serving insurance distributors and establish their own insurance companies in the near future.
The Tesla Insurance model, nonetheless, has the potential to turn the car insurance market on its head. It will surely spread innovation to other market segments.