According to a report from the data and analysis company GlobalData, the tech giant Amazon is planning to enter the car and motorcycle insurance market.
The news poses an unwelcome threat to other insurance companies that had to go through a challenging year throughout the COVID-19 pandemic.
Amazon’s entry into the insurance market will help change consumers’ expectations of purchasing insurance products from non-traditional companies.
Amazon is not the only one, because other large global high-tech companies (such as Google, Amazon, and Facebook) also have a large customer base that they can use when selling insurance.
Regardless of the current customer base, surveys show that people are still reluctant to buy from them.
GlobalData’s 2019 UK Insurance Consumer Survey found that 62% of consumers would rather not buy insurance products from Amazon. Similarly, 63%, 66% and 78% of consumers will not buy insurance from Google, Apple and Facebook, respectively.
GlobalData insurance analyst Ben Carey-Evans said: “This technology giant is launching this product in India, but its business scope is very wide, which may eventually make it a strong competitor to established global companies.
So far, auto insurance has been one of the few product series relatively rarely affected by COVID-19. As people travel less, the amount of claims has dropped significantly. However, insurance companies will not welcome this additional competition, as car sales are expected to decline after the pandemic as consumers continue to work from home. ”
Yasha Kuruvilla, an insurance analyst at GlobalData, added: “Because customers are reluctant to buy insurance from technology companies, it is a better strategy to cooperate with third-party providers, at least until it becomes a recognized insurance company name.
“Amazon’s partnership with insurance technology company Acko rather than an established company also highlights the retailer’s desire to work with digital and agile companies. This will not only put more pressure on existing companies, but not only because of the market’s There are new large entrants, and if they want to work with any other future technology companies in the insurance business, they also need to go digital.”
The first announcement suggesting that Amazon will enter the property and property insurance industry was issued in May 2019.
We have more than 150,000 monthly reinsurance news readers and more than 13,000 daily email subscribers. Advertising information can be found here.
We also published Artemis.bm, a leading publisher of industry news, data and insights related to catastrophe bonds, insurance-linked securities, reinsurance convergence, life insurance risk transfer and weather risk management. Since the release of 20, we have issued and operated Artemis. Years ago, there were about 60,000 readers per month.
Use our contact form to contact directly. Or find and follow reinsurance news on social media. Get reinsurance news via email here.
All contents copyright © Steve Evans Ltd. 2020. all rights reserved. Steve Evans Ltd. (Steve Evans Ltd.) registered in England with the number 07337195, website privacy and cookie disclaimer
Post time: Sep-16-2020