Illustration: Aïda Amer/Axios

Automakers are beginning to offer subscription packages that include insurance, typically via a third-party provider. Tesla has gone a step further, recently announcing it will offer its own policies, which may signal a larger shift in auto insurance.

Why it matters: The volume of vehicle behavioral data that connected vehicles will generate could be leveraged by automakers to edge into the insurance market, while enabling them to proactively protect drivers by recommending safer routes.

The big picture: Connected vehicles generate huge amounts of vehicle usage data. 

  • Real-time data is already becoming a new currency for insurers, impacting the way the $558 billion industry works.
  • But this change also creates opportunities for new insurance technology start ups and automakers to get into the insurance space.
  • Insurance tech companies raised $3 billion in investment in the first half of 2019, money that will likely advance in-house OEM insurance.

How it works: This influx of data creates a new era in insurance because, fundamentally, insurance extrapolates from historical data to create risk models.

  • Real-time data collection can accelerate the building of those risk models for emerging mobility technology, like AVs and electric scooters.
  • The breadth of data available also allows for more insightful risk modeling.

Between the lines: Tesla's move reinforces the idea that OEMs could begin providing their own insurance.

  • Yes, but: This could prove a challenge for companies long dedicated to "bending metal."

What we're watching: In addition to offering insurance, this influx of data could be leveraged by suppliers to protect users in new ways. 

  • Eventually, navigation guidance could recommend a route where accidents are less likely to occur during rush hour.
  • Leveraging traffic, weather, and other data can protect fleets, equipment, and especially people, which would reduce risk and lower insurance costs.

Ian Sweeney is the GM of Mobility at Trov, an insurance technology company.

Go deeper

Louisville officer: "Breonna Taylor would be alive" if we had served no-knock warrant

Breonna Taylor memorial in Louisville. Photo: Brandon Bell/Getty Images

Sgt. Jonathan Mattingly, the Louisville officer who led the botched police raid that caused the death of Breonna Taylor, said the No. 1 thing he wishes he had done differently is either served a "no-knock" warrant or given five to 10 seconds before entering the apartment: "Breonna Taylor would be alive, 100 percent."

Driving the news: Mattingly, who spoke to ABC News and Louisville's Courier Journal for his public interview, was shot in the leg in the initial moments of the March 13 raid. Mattingly did not face any charges after Kentucky Attorney General Daniel Cameron said he and another officer were "justified" in returning fire to protect themselves against Taylor's boyfriend.

U.S. vs. Google — the siege begins

Illustration: Sarah Grillo/Axios

The Justice Department fired the starter pistol on what's likely to be a years-long legal siege of Big Tech by the U.S. government when it filed a major antitrust suit Tuesday against Google.

The big picture: Once a generation, it seems, federal regulators decide to take on a dominant tech company. Two decades ago, Microsoft was the target; two decades before that, IBM.

Dion Rabouin, author of Markets
2 hours ago - Economy & Business

Why the stimulus delay isn't a crisis (yet)

Illustration: Aïda Amer/Axios

If the impasse between House Speaker Nancy Pelosi and the White House on a new stimulus deal is supposed to be a crisis, you wouldn't know it from the stock market, where prices continue to rise.

  • That's been in no small part because U.S. economic data has held up remarkably well in recent months thanks to the $2 trillion CARES Act and Americans' unusual ability to save during the crisis.