THE REALITY OF CREATING AN AUTO INSURANCE PRODUCT
If you’re an up-and-coming automobile manufacturer (or InsurTech) looking to break into the auto insurance space, you may want to read this. Insurance isn’t like manufacturing; it’s not like retail, it’s not like banking, it’s not like anything else. However, if you know a few things about the industry beforehand, you can save yourself a lot of grief later on.
If I were an automobile manufacturer and wanted to build an insurance product for my cars, it would be (conceptually) straightforward; come up with the unique coverage for my specific type of car and then price accordingly based on the characteristics of my automobile. However, the reality is quite a bit different for some precise reasons.