The internet giant continues to expand its offer of products and services, one of their objectives being the commercialisation of insurance and vehicles.
According to global analyst GlobalData, Amazon plans a disruptive landing in the UK insurance sector, as its recruiting insurance professionals in London to join a new team that aims to break into the insurance market in the United Kingdom, Germany, France, Italy and Spain.
The consultant argues that “Amazon offers transparent services such as the ability to track a package, next day delivery, a clear return policy and customer reviews of the products, providing clear communication to customers throughout the purchase process”.
Patricia Davies, financial services analyst at GlobalData, says: “Amazon has a positive reputation for putting customer needs at the forefront of their proposals”.
According to GlobalData’s 2017 General Insurance Survey, 18% of consumers would buy their car or home insurance at Amazon.
Davies continues, “The company is in a good position to establish itself as a key service provider for homes with its Prime service, in addition to offering a television channel and a movie service. We are already seeing a series of new proposals that are moving away from an annual renewal to a monthly subscription, which would fit well with Amazon’s current business model”.
She adds that “the company’s investment in technology has taken Echo and Dot, voice-activated loudspeakers that use artificial intelligence to meet daily needs, into people’s homes. This positions Amazon well to provide insurance needs, since technology in the home will soon define the insurance requirements of an individual home. This close and interactive relationship is a far cry from the “limited to annual” renewals or contact points of the claims processes to which insurance companies currently work”.
Davies adds: “This is a sure sign that disruption is on the way to the UK insurance market”.