Is Amazon moving towards business insurance product?
Published: March 14, 2018
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Industry News
Amazon’s rumored interest in entering the insurance industry seems a little more than speculation at this point. From recruiting insurance professionals in London last year and making forays into the Indian market this year, the retail giant’s intentions are clear.
The latest move towards insurance for Amazon involves talks to create a credit card that will be sold to small business customers. It is a clear sign Amazon wants to expend its portfolio in finance and could lead to the e-commerce company selling business insurance.
According to a Bloomberg report, Amazon is talking to banks such as JPMorgan about developing a co-brand credit card. While this seems to be the limits of the interest, there is no doubt the card facilities could be expanded in time to include business insurance.
Amazon would be a major disruptor in any insurance market it enters and the company clearly thinks it can carve a place in the market. A recent survey showed 45% of Amazon customers would consider the company for their insurance. Considering there are hundreds of millions of customers, that’s a fair amount of potential customers.
“If you have, as Amazon clearly does, a customer base…in the high millions, and the data behind all of that as to what it is that you and I are buying, and where we are buying it, etc, you have two very powerful pieces of information,” Andrew Holderness, Clyde & Co’s global head of corporate insurance, said.
“Insurance is different from selling bits of kit in a huge hangar – it is a highly regulated industry and we need to tick the relevant boxes wherever we’re looking to sell insurance,” he said.
“Are they going to move into this space? Certainly they will be looking at it, clearly they are…They are looking to generate revenue, and selling insurance is clearly a potential for that revenue generation.”