Amazon has been giving hints and clues to the insurance industry for some time: already in 2016 Amazon.co.uk launched Amazon Protect, a policy against accidental damage, breakdowns, theft of objects (from the washing machine to the mobile phone) purchased through the same ecommerce platform, a policy created in partnership with The Warranty Group, a policy featuring an overall integration in the product purchase process on the platform to be absolutely seamless and smooth for the customer, the best in terms of customer experience.
In 2018 it acquired Acko, an Indian insurtech startup, a real digital-first insurance company, focused on offering low-cost yet highly customized policies, in a huge market where the insurance business grows, supported by State initiatives.
Again in 2018, Amazon partnered with Berkshire Hathaway, Warren Buffet Company, and JPMorgan Chase & Co. to offer a simple, high-quality, cost-effective and transparent health care policy to their U.S. employees, designed to improve staff satisfaction and reduce costs; and another partnership with Travelers, the U.S. company to offer smart home products, and related policies, through the Amazon marketplace.
There is no doubt that the smart home is a new ecosystem of business development where even a policy is perfectly embedded.
For the consulting firm CB Insights, the insurance industry is one of the sectors in which in the coming years will bring disruption: in short, it can.
CB Insights remarked a competitive advantage over insurtech startups due to its large loyal customer base and wide range of existing products, which means that adding insurance would only be a minor change in user experiences.
As far as distribution is concerned, Amazon could simply charge traditional insurance companies a huge fee to redirect customers, as already done with the Warranty Group, which provides Amazon Protect in the UK.
The strong branding of Amazon and the reliability of its customers could make it a very attractive option for consumers looking for a more attractive insurance offer.All rights reserved