Yes we are creating a Tesla insurance product. Um, and we hope to launch that, uh, in-inabout a month] [Ok] [It will be much more compelling than anythingelse out there] Since then, Tesla insurance has launched inCalifornia with plans to expand coverage throughout the US over time. Those of you familiar with legendary investorWarren Buffet will know he built his empire on the back of insurance businesses, startingmore than half a century ago. The Automotive insurance market in just theUnited States is almost $300 billion dollars today and Tesla is uniquely positioned totake a disproportionately large slice of this--relative to its fleet size--as its product offeringwill be almost impossible to compete with. In this video I explain why Tesla insurancewill dominate and transform the automotive insurance industry, while simultaneously fuellingTesla’s rapid growth and expansion. How Insurance Works First, a quick primer on insurance. The most important piece of the insurancepuzzle are actuaries. These are well-paid professionals who analyzefinancial risk using mathematics, statistics and financial theories. Their job is to determine how much of a premiummust be charged to customers to statistically ensure a profitable company.
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