I continue to have no idea what ‘disruption’ in insurance would look like.
Every insurance company must adhere to the insurance regulations in each jurisdiction they conduct commerce. Every auto insurance company can only succeed – that is generate profitable premiums – by meeting, if not exceeding, the metrics of the auto insurance line of business. Every auto insurance carrier must sell its policies through agents or brokers (in the US).
Any auto insurance carrier using models or algorithms for pricing must ensure that their models or algorithms used for pricing comply with insurance regulations for their jurisdiction.
Tesla Insurance Company won’t be ‘disrupting’ anything.
Tesla Insurance Company will definitely be an experiment: determining if can generate profitable premium in an extremely nichey-niche market segment.
The entry of Tesla Insurance Company won’t change the League Tables (ranking of insurers by major line of business). No ‘disruption’ there.
I believe there is rampant idiocy on the part of technology firms (and VCs) who erroneously believe that the use of new(er) technology changes an insurance carrier into some type of technology firm. This idiocy blinds them to the realities of the insurance industry.
The idiocy extends to the fools who think that insurance regulations exist due to lobbying instead of realizing that insurance regulations exist to protect peoples’ lives, livelihoods, incomes, physical assets, behaviors, and actions.
Insurance is NOT A GAME. Insurance does not exist to be plundered or experimented with because the existence of insurance impacts people in a very real meaningful manner.
I fully realize that terms like ‘disruption’ or ‘transformation’ or ‘innovation’ produces a sexual-like feeling in a lot of people replete with body shakes and sweats. I suggest that people who feel this way should throw those terms down the sewer.