Following the news that technology giant Amazon is entering the price comparison market within household insurance in the UK;

Ben Carey-Evans, Senior Insurance Analyst at GlobalData, offers his view:

“Amazon’s move into price comparison services for household insurance could significantly disrupt a model that has long been dominated by the ‘big four’: Compare the Market, Go Compare, MoneySuperMaket, and Confused.com. The retail giant will offer a serious threat to these staples, as it has a reputation for digital expertise and value in the UK, alongside significant brand recognition—with a total of around 12 million Prime members.

“GlobalData’s UK Insurance Consumer Survey* data shows that 29.4% of UK consumers bought household insurance through price comparison sites in the UK in 2021. Of those, 95.7% percentage bought their insurance through one of the ‘big four’. This highlights the extent of their dominance in the market, and this is the model Amazon looks well placed to disrupt. Our 2021 UK Insurance Consumer Survey found that 19.7% of UK consumers were willing to purchase home insurance from Amazon. This shows a sizeable proportion of consumers were open to buying insurance through Amazon before it even offered this service.

“The current cost-of-living crisis will make consumers focus heavily on price and value when choosing policies. However, given its reputation for low prices, alongside its presence within UK households, and its digital expertise, it is likely to have an immediate impact on the market and become the fifth key player.”

* The UK Insurance Consumer Survey was conducted in Q4 2021 and was made up of 4,389 consumers , with quotas to ensure that samples are nationally representative.