According to numerous new reports in the past day, Amazon is considering a new enterprise: a UK insurance comparison site. So is Amazon Insurance on the way?
You’ll be familiar with the idea: the comparison sites aggregate all the various offers out there and, depending on the data you provide, will give you advice and, hopefully, a most competitive price on your insurance cover.
And it seems that some of the key providers in the sector are up for jumping on the Amazon bandwagon (if not notably enthusiastic by the disruption), if the rumours come to fruition. One reason is because so many are already on comparison sites. Plugging into another isn’t a big leap, just as long as it’s worth their while.
If Amazon establishes a comparison site then I suspect Admiral will be interested in being a member, potentially. Price comparison is the main source of distribution of our products and we’ll await with interest what they do.
– Geraint Jones, Chief Financial Officer, Admiral Insurance
The notion of Amazon Insurance isn’t as incongruous as it might seem because Amazon does already have relevant expertise because it is, on one level, a data analysis company. Amazon Lending already makes value judgments based on past risk and financial liabilities.
And, as a seasoned marketplace merchant, the USP for Amazon Insurance (exactly the same as with Amazon Lending) is that they likely know you inside out from your Amazon trading behaviours as a buyer and, more critically, as a merchant. If you shop a lot, Amazon knows you well. From PJs to peanut butter via sunscreen and football socks. They know whether you prefer to twist or tarantella.
But it is one thing getting involved with developing a comparison site for insurance and actually becoming an insurance company. The regulatory concerns are onerous for starters. Would you welcome it and insure with Amazon?