Yes, the reason for it existing isn't clear. I don't see how Tesla can practically reduce costs of payouts, so the other option is Tesla claiming that the exist

Yes, the reason for it existing isn't clear. I don't see how Tesla can practically reduce costs of payouts, so the other option is Tesla claiming that the existing insurance industry is systemically over-estimating the risk of Teslas, which even if true, doesn't seem like it would continue indefinitely.