The $1.2 trillion dollar market that Tesla aims to dominate by 2030

The insurance market worldwide for motor vehicles is valued at $800 billion. How many automakers want that market? Well, they probably all do, but there’s really only one automaker that wants to sell insurance in Europe, China, and North America. The three biggest car regions in the world.

Insurance makes a lot of money. The truth is some of the biggest insurers in the world make billions of dollars in profit every year. And Tesla is saying, you know what, why don’t we do that too? Because you know what, Tesla has a huge advantage versus Amy versus all these big motor insurance companies, a big advantage. It’s one that insurance companies will never have and it means that eventually they could be forced out. Seriously, if you think about this purely on a logical level, information and data are the advantages. And those companies may never have the information and data that companies like Tesla have right now.

Now, here’s the thing, even though the vehicle insurance market is only valued at just over $800 billion US dollars right now, which is well over a trillion Australian dollars, it’s predicted to hit $1.22 trillion in 2030. That’s at a CAGR of 7.2%. And this is due to an increase in global automotive production and sales. Now, with the insurance industry’s evolving role in the transportation ecosystem, the vehicle insurance market is projected to undergo significant changes in the not-too-distant future. In fact, they’re happening already. The rise in demand for passenger and commercial vehicles across the globe is boosting the global vehicle insurance market. And the increase in the number of traffic incidents that your corporation of strict government guidelines for the acceptance

of vehicle insurance and the growth of international vehicle sales due to the rising consumer per capita income of the major factors driving the global vehicle insurance market size. Furthermore, the adoption of self-driving vehicles will increase the vehicle insurance market growth between now and 2030. The reason being, it will go from $800 billion US dollars to $1.22 trillion and Tesla is paying very close attention to that.

Tesla already sells insurance in the United States. They already sell insurance in China. They’re about to hit the European automotive market to sell insurance. There they have a captive audience. There’s a good chance Tesla will go from selling around 1.35 million vehicles in 2022 to close to 10 million vehicles in 2030 and then they can sell insurance to every single one of those new customers. 10 million cars sold would be a massive percentage of the approximately 78 million car sold per year worldwide and it would give Tesla access to a captive market. However, there’s one big reason what way happen is many people will walk away and say, no, I don’t want Tesla insurance. Many people will say, yeah, I want it. However, Tesla will easily be able to get access to giving you a cheaper quote. It can just assess the customers that drive in a certain way and say, let’s ensure them. None of them having accidents will give them cheaper insurance than our competitors, whoever they are, Geico, whoever the hell they are, doesn’t really matter. Because we know these customers drive safely. They drive on a way which means that they’re about, well, 95% less likely to have a crash.

Therefore, we’ll pretty much undercut anyone for those specific customers. That may be 40% of their customers and maybe 60%, but here is where Tesla’s advantage lies. They have the ability to actually access that data. Now, whether that’s legal or not, I don’t know, but more than likely what you’ll get to do is opt in. You’ll say to Tesla, well, yes, you can have access to my driving data. If you want to sell me products, I’ll get a discount. I’ll get a discount on whatever it is, SpaceX internet. I don’t know, get some free extra features that cost Tesla nothing. Say some extra features in the car that Tesla can just do with and over the updates for games, whatever that is. At some point in time, this is a market that Tesla will actually dominate. And it’s for that reason they have access to the data that will enable them to dominate.

Now, how would the average insurer know that you’re a safe driver? I personally think I’m not really that safe of a driver. I take too many risks. I drive up and down a dangerous road every day, where you’re much more likely to have accidents as a gravel road on the side of a mountain. But my insurance company doesn’t know that. However, Tesla would. And that is the difference. That is an insurmountable difference.

Now, Tesla’s preparing to enter the European insurance market this year to provide branded insurance for its vehicles in the region. And the manufacturer is about to launch a brand in London and has begun looking for employees for it. This is a huge, huge thing because think about it. The average consumer goes and buys a new car, and it’s so much easier not to have to try and look for a quote but to just get insurance directly when you buy the car from Tesla themselves. Tesla is seeking to open a European branch of its insurance business by registering in Malta, according to documents filed with the company’s house. The company has already begun searching for the role of legal counsel to work in full stack in-house in the insurer in the firm’s London headquarters, according to a job posting on Tesla’s website. The person in this position will be required to build and lead the in-house legal function of the insurance company to guide through the legal and regulatory landscape of an insurer operating cross borders in Europe. Basically, what Tesla wants to do is maximize their earnings. They’re set up in Malta, right? They pay less taxes. This is the whole point of why they want to set up in Malta. Pay less taxes, still sell insurance to people in Europe.

Currently, Tesla insurance operates in 12 US states and in China, and it’s waiting for approval in several other US states. The company understands its vehicle’s technology, its safety, its repair costs, knows exactly, and eliminates traditional insurance carriers’ chargers is what they will do. The Tesla insurance provides a convenient monthly payment and reflects the company’s vehicles active, safety, and advanced driver assistance features, which come standard on all new Tesla vehicles. So that’s one big advantage. Look at Tesla’s safety score, right? It routinely gets the best scores, especially in its safety assistance features. And those are the features that can help Tesla vehicles avoid a crash, meaning Tesla’s less likely to have to pay out on this insurance.

Tesla insurance actually uses real-time driving behavior, and this means that the monthly insurance rate is calculated by taking into account the safety score with which each individual drives. Thus, the higher the safety score, the less the owner pays on a monthly basis. It’s genius. This encourages safer driving and its gamification. People love gamification. And this will directly affect how much users actually pay for their insurance. Now, Tesla constantly adjusts the amount of each owner’s monthly installment based on the safety score, and average driver could save between 20-40%. And the safest drivers could save up to 60%.

Tesla is going to be one of the biggest players in the insurance market by the end of this decade. It aims to be it has the data to do so, and I see it happening. Will they dominate the insurance market? I don’t know, but this is a $1.2 trillion market in 2030, and Tesla is putting in place all the necessary steps to become one of the biggest players globally. There aren’t really any global insurance companies that operate in all these markets successfully. However, Tesla could potentially be the first.

I think this is basically free money. Tesla has the data, and selling you insurance, well it’s selling you nothing essentially, It’s simply selling you a product that you may never use. It’s kind of like free money.

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The Electric Viking

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