Amazon will make use of its huge pool of data to provide a comprehensive insurance policy comparison service. Ageas is among the first to announce that its home insurance policies will be sold through the new Amazon Insurance Store using a new product called ‘Ageas Select’. Policies from the Co-op and LV+ General Insurance will also be offered on the Amazon platform.
Rival comparison site Moneysupermarket.com shares fell last week following the announcement.
“Amazon is the biggest business in the world. Anyone who hasn’t already bought from them is living in a cave,” says Branko Bjelobaba, FCA General Insurance specialist and former VP of the Chartered Insurance Institute. “People will still buy from providers that have wide-ranging insurance policies in place – Aviva, LV, Allianz.”
Last year, 29.4% of UK consumers bought household insurance through price comparison sites in Britain, according to analytics firm GlobalData.
Amazon power
“Amazon has the power set up its own own insurer and offer add-ons like ‘out of home’. Anyone travelling from Europe to the US needs some kind of insurance for delays, curtailment, or cancellations. Most insurers would give anything to have the information that Amazon has,” said Branko.
The move will fuel fears among traditional financial sector firms about the implications of using services such as Amazon Web Services. While AWS wants them to take up its SaaS offer, the parent company could also exploit existing brands to help it enter and potentially dominate the market.
