The insurance industry, nowadays strongly technology-related, appeals to big tech and traditional companies should focus much more attention on this issue, since the results are getting to be clear.
Amazon, for example, is launching car and bike policies in India, as reported by Business Insider: the policies can be purchased through Amazon Pay, in just 2 minutes, without having to fill out the traditional paperwork. In addition, the claims will also be completely digital, fast, without paperwork; super efficient repair management.
A very attractive business, considering that India has a low insurance penetration in the automotive sector (about 50%) and a high adoption of fintech (the highest in the world). The insurance offers of Indian incumbents are inaccessible due to very high and uniform prices combined with being mainly offline.
For its new company, Amazon is expanding its partnership with Acko, an insurtech startup that has obtained the license to operate, so it is not a distributor but a real insurance company, digital-first, relying on the offer of low-cost but highly personalized policies.
The market response can only be positive, on the other hand, consumers from all over the world are increasingly willing to buy insurance from large technology companies. Only 17% of consumers were willing to do so in 2016, but since then it has grown to 36% in 2020, according to Capgemini.All rights reserved