Elon Musk has said that Tesla will be selling auto insurance. On Saturday, at the annual shareholders meeting for Berkshire Hathaway, Warren Buffett had something to say about that.
Insurance is “not an easy business,” Mr. Buffett said.
He acknowledged that Tesla had an “information arbitrage opportunity” given its “direct knowledge” of a driver's risk profile “based on the car.”
However, Mr. Buffett added, “The success of the auto companies getting into the insurance business is probably as likely as the success of the insurance companies getting into the auto business.”
Mr. Buffett said that he would “bet against any company in the auto business” getting into insurance. Would he be worried about competition from Tesla? “I worry much more about Progressive.”
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].