Following today’s news that Amazon is considering launching a UK insurance comparison site,
Danielle Cripps, Insurance Analyst at GlobalData, a leading data and analytics company, offers her view on the breaking news;
‘‘Amazon has so far been seen as a threat and source of competition by UK insurers, but this move would see the company become a distribution business partner to the sector.
‘‘The aggregator market has lacked innovation over recent years to which Amazon could bring something new. Some insurers could seek to build their relationship further, adding insurance skills to Amazon Alexa or using Amazon’s marketplace of products such as smart home devices or wearables to further their product offerings.
‘‘However, Google launched a similar product in 2016 with limited success. Google and Amazon have similar profiles as giant tech players and there is not an obvious factor as to why Amazon would fare better, but its entry into the insurance industry is certainly more timely.
‘‘Insurance was relatively unaffected by the Fintech wave in 2016, with few outside players having established themselves. However, InsurTech has progressed significantly since then, with even Amazon itself having created relationships with Aviva through its Alexa device.’’