By: Luke Jones, Published on December 20, 2017 02:14 PM, Last Update on December 31, 2017 11:16 AM
Global tech giant, Amazon, is reportedly planning to enter the insurance market. The company has been recruiting insurance professionals in London, suggesting it has an interest in European insurance. Amazon entering the industry would be a major disruptor to established insurance companies.
If anyone doubts the ability to Amazon to turn the existing market upside down, it is worth looking at the company’s other markets. The world’s largest retailer developed rapidly alongside the move towards internet shopping. More than most, Amazon has caused the demise of numerous retail giants as consumers buying habits changed.
Amazon is also comfortable the world’s biggest cloud service provider, one of the leading AI developers, and a significant player in future tech. As insurance moves through a technological revolution, the company would be well placed to be a leader.
Of course, there are no guarantees an insurance foray for Amazon would work in its favour. Established companies already know the market and the industry and would put up a fight. However, we have seen how Uber has entered an established market and disrupted it.
“Given Amazon’s market presence and their capabilities in the digital arena, if they do get into insurance, it’s likely to be disruptive,” Seth Rachlin, EVP and insurance lead at Capgemini, told Insurance Business.
“There’s no digital property that is more pervasive from a retail perspective than Amazon. If they do something beyond the warranty business, then it’s likely to be disruptive because people will notice and pay attention,” commented Rachlin.