Re:Tesla Insurance
by phonon on Thursday August 29, 2019 @09:25AM
(#20829250)
Markel, not Merkel.
No, fronting is not reinsurance. It's basically a licensed insurance company that is "leasing out" its license/assisting in regulatory/filing matters for a small percentage of the premium.
Tesla doesn't want to set up an actual insurance company, so it's easier to reuse an existing one.
Almost certainly there is a reinsurer involved as well (that hasn't been publicly disclosed), as Tesla likely doesn't have excess capital available to fund the surplus requirements for this auto insurance line.
No, fronting is not reinsurance. It's basically a licensed insurance company that is "leasing out" its license/assisting in regulatory/filing matters for a small percentage of the premium.
Tesla doesn't want to set up an actual insurance company, so it's easier to reuse an existing one.
Almost certainly there is a reinsurer involved as well (that hasn't been publicly disclosed), as Tesla likely doesn't have excess capital available to fund the surplus requirements for this auto insurance line.
https://www.insurancejournal.com/news/national/2019/05/02/52...