Reinsurance News

Amazon sizing up UK insurance price comparison site: Reuters

16th August 2018 - Author: Charlie Wood

Amazon has been in talks with some of Europe’s leading insurers as it weighs up a move that would see the online giant launch a UK price comparison website, according to Reuters.

amazon-logoThe type of insurance Amazon would look to sell via such a site remains unknown. However, the popularity of home and motor policies on sites such as Compare the Market and GoCompare is worth noting.

Morningstar analyst R.J. Hottovy told Reuters, “As Amazon becomes a larger part of the home, whether it’s products delivered to the home, security monitoring, home services like Wi-Fi installation, you can make the case that insurance is the next logical step for this company.”

Indeed, Amazon is in a unique position to make a move into the insurance market; its loyal customer base, trusted brand and array of smart products primed to leverage user data positions the Jeff Bezos-led firm favourably.

An Amazon price comparison website would have the potential to draw from these strengths and challenge existing players whilst being able to build on Amazon Protect, an existing product in Europe offering extensions to manufacturers warranties.

Three industry executives told Reuters they had held talks with Amazon about the possible launch of a site. One said the talks were part of several discussions Amazon is having with insurers. A second said there were no imminent launch plans.

“If it 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,” Jones told Reuters.

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