Within the past years, Elon Musk
has made more buzz, than all the aliens with their crop circles ever. And now he approaches insurance with Tesla’s UBI
based on the real-time driver behavior score. Nothing new under the sun, but good-old UBI.Why is it worth attention?
Progressive was the first to adopt UBI 20 years ago. Their story is quite similar to what Tesla has done with EVs, and the world wonders if they can repeat the story with UBI.
Elon Musk must have been a crusader in his previous life, as now his initiatives start most of the Internet’s holy wars. And Tesla’s UBI is not an exception:
Some blame Tesla
for an “imprecise score” that may result in inaccurate insurance pricing. It may be true, given that there are a few Teslas on the roads, so their ML might not be that sophisticated by now.
Others advise Musk to focus on his core business – vehicle manufacturing at scale – and only then give a step towards insurance. A well-grounded opinion, unless there’s the Easter egg – Tesla still produces fewer vehicles than any big OEM, yet has a cap higher than all of them together.
Of course, there are people who are excited to see Tesla tapping into the new niche and are sure that Musk will deliver another revolution. After a few attempts, of course.
Knowing insurance as a rather conservative industry, where high profits coexist with the lack of innovations, we are happy to see one more movement towards connected insurance.
But Tesla is not the first OEM in this field. You might have heard about the latest OEM UBI initiatives:
- Toyota Insurance
– underwritten by Aioi Nissay Dowa Insurance;
- GMs Onstar Insurance
– underwritten by AmFam;
by Swiss Re
And now we see Tesla joining the game.