Tesla is in the throes of launching (sorry about that) an insurance carrier. Amazon has entered the insurance market in India as an insurance broker
Some questions that folks involved with the insurance industry might want to consider before getting excited or running off to the hills screaming in fear about any new entrant:
- what insurance line(s) of business are we talking about?
- what role – in the macro insurance value chain or insurance ecosystem – is the new player taking on?
- what jurisdictions are the new player participating?
- if the new player is entering the insurance market as a broker, where are they getting their ‘market’ (i.e. what primary insurance carriers are actually carrying the risk?, what reinsurance carriers are involved)?
- what are the metrics of financial success for the insurance line(s) the new player is conducting commerce?
- how is the new player providing customer service (FAQ web sites or actual human beings)?
- how is the new player providing claim service (FAQ web sites or actual human beings)?
- what is the size of the insurance market of the insurance line of business the new player is conducting commerce?
- how many other players already have this same role in the jurisdiction FOR that insurance line of business?
- what are insurance regulations regarding the role the new player is taking on in the jurisdiction FOR the lines of business?
- what is claim experience in the jurisdiction FOR the line of business the new player is taking on?
- what are the loss ratio and combined ratio experience for the line of business in the jurisdictions the new entrant is conducting commerce?
Rabkin's Opinions 
Great points Barry as usual. Love your posts and the way you always tell it like it is! I actually welcome new entrants into the insurance business–not that we need any in the space but it is chance for those who believe it is such an easy business to see just how difficult it is to succeed and grow and then maintain market share. (See Lemonade struggles). The P&C insurance business is one of the most competitive, regulated litigious business arenas you can play in. Most of the new entrants will fail because they underestimate and totally disrespect the sophistication and professionalism of the marketplace. Thanks again for all you do! Looking forward to the book.
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