Warren Buffett Comments On Whether Elon Musk's FSD Will Impact Berkshire's Auto Insurance Business. Will

At Berkshire Hathaway's annual shareholder meeting, an investor questioned Warren Buffett about the impact of Tesla's Full Self-Driving (FSD) technology on GEICO's auto insurance business. The investor speculated that a 50% reduction in accidents could lower insurance rates, affecting GEICO's revenue and margins. Buffett acknowledged that while a decrease in accidents would reduce insurance costs, it would be beneficial for society overall.

Buffett and Ajit Jain, vice chairman of insurance operations at Berkshire, discussed the broader implications of improved driving technology. Jain noted that although accidents might decrease, the cost per accident has increased significantly. He also mentioned Tesla's exploration into offering insurance, which has not yet seen substantial success. Buffett expressed skepticism about Berkshire's role in the emerging zero-emission vehicle market, citing a lack of specific expertise in that area.