US electric-car leader Tesla has set up an insurance brokerage in China as part of plans to bring its data-powered insurance plans to the country’s Tesla owners, reported Caixin.
Registered in the Shanghai pilot free trade zone on Thursday, where the company has also built a major factory, the new brokerage functions as an intermediary, according to public business registration records. In general, an insurance broker designs insurance plans backed by insurers and makes a commission from each sold.
Tesla planned to use data captured from its cars to develop driver profiles and set insurance rates based on how aggressively they drive, the company’s Chief Financial Officer Zachary Kirkhorn said on its 2020 second-quarter earnings call.
CEO Elon Musk said on the call that accuracy of information is “at the heart of being competitive with insurance.” Musk said Tesla would assess drivers individually, “looking ahead with smart projections,” and inform them of what actions they can take to reduce their insurance. “We’re building a great — like a major insurance company,” he said.