Reinsurance News

Amazon could target P&C insurance as a broker: CB Insights

30th May 2019 - Author: Matt Sheehan

Analysts at CB Insights have suggested that Amazon could enter the insurance space as a broker on the property and casualty (P&C) side, using its size as an e-commerce retailer and its huge member base to become a major distributor in the U.S.

amazon-logoAmazon has already shown some interest in building out its own insurance business, having launched Amazon Protect coverage in 2016 and confirming an investment in the India-based start-up Acko last year.

CB Insights noted that the company has a competitive edge over other start-ups due to its established member based and existing products, meaning that adding insurance would only constitute a minor UX change.

On the distribution side, Amazon could also simply charge traditional insurance carriers a hefty fee to send them customers, as it has done already with the Warranty Group, which underwrites Amazon Protect in the UK.

Amazon’s strong brand and customer trust could also make it a highly attractive option for customers in search of a more valuable insurance offering.

Analysts observed that Amazon has already begun feeling its way around the insurance industry through a new healthcare venture with JP Morgan and Berkshire Hathaway.

The company also announced a partnership with Travelers in October 2018 to offer discounted smart home kits to customers buying home insurance.

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