Tesla co-founder and CEO Elon Musk recently announced plans to launch a “compelling” insurance programme for Tesla electric car owners, which would be managed in-house and would be based upon Tesla driving data.
On Wednesday (May 01) it was revealed that the automotive firm will launch its insurance program through a relationship with State National Insurance Company, a subsidiary of insurance giant Markel Corporation.
According to a Seeking Alpha report, State National will serve as a fronting company for the innovative program, with most of the risk being reinsured by a third-party.
In the Markel earnings call on Wednesday morning, co-CEO Richard Whitt said State National is supporting “innovative solutions” that Tesla has established with risk-taking partners.
As Seeking Alpha reports, Whitt said: “State National does not retain any business, their model is not to retain any of the business, and so this business is being seated on to Tesla’s risk-taking partner. And I don’t want to say any more than that because obviously, Tesla and the risk-taking partner, they have many things they probably want to say about the arrangement.”