Business team collaborating on project Designing auto insurance is much more complicated than designing the auto itself. (Photo: iStock)

If you’re an up-and-coming automobile manufacturer (or InsurTech) looking to break into the auto insurance space, you may want to read this. Insurance isn’t like manufacturing, it’s not like retail, it’s not like banking, it’s not like anything else. But if you know a few things about the industry beforehand, you can save yourself a lot of grief later on.

If I were an automobile manufacturer and wanted to build an insurance product for my cars, it would be conceptually straightforward. I would come up with the unique coverage for my specific type of car and then price it accordingly based on the characteristics of my automobile. However, the reality is quite a bit different for some very specific reasons:

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.