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Car insurance in general is a race to the bottom with competition. A good quarter has 70% of incoming premium going out to settle claims. When you have fender
by dd82 2y ago
Car insurance in general is a race to the bottom with competition. A good quarter has 70% of incoming premium going out to settle claims.
When you have fender bender claims costing 20-40k USD to repair, how do you price that risk?
- aleph_minus_one 2y ago> When you have fender bender claims costing 20-40k USD to repair, how do you price that risk? This is a solved problem. Ask any actuary who specializes in casualty insurance, or read a standard textbook about non-life insurance mathematics.
- gnu8 2y agoShush, I want to see a YC25 auto insurance startup that uses a pile of overheated video cards as a crystal ball to make underwriting decisions.
- dd82 2y agoNot really, car insurance rates need to go through alot of state level validation in order to be approved. Other models are not considered insurable by GEICO as well. So likely small pool of policyholders + exorbiant claim payments == not worth the headache
- pokerface_86 2y agomost people buying specialty casualty insurance also have MUCH deeper pockets than even most people buying a cyber truck