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London – Amazon expands the e-commerce giant’s foray into financial services by launching home insurance sales in the UK through partnerships with three local insurers.
The company announced Wednesday that it is launching a new service called the Amazon Insurance Store.
The product shows shoppers insurance policy quotes from insurance companies like Ageas, Co-op, and LV+ General Insurance, and Amazon pocket a commission on every sale from its partners. This is similar to what price comparison sites such as Comparethemarket and Moneysupermarket offer.
Customers who want to apply for home insurance on Amazon can do so by completing a survey that asks questions about their home insurance needs. Next, you’ll see a list of quotes from Amazon’s insurance partners, as well as reviews and star ratings from other customers. Once the user decides which policy to use, they pay using Amazon’s own online his checkout. The service is initially rolling out to a select few customers, but is expected to be available across the UK by the end of 2022.
“Finding the right home insurance policy can be a time-consuming and confusing task. Quotations often omit essential coverage to lead at the lowest prices,” he said. Jonathan Feifs, General Manager of European Payments Products at Amazon, said: press release Wednesday. “When we set out to create the Amazon Insurance Store, we wanted customers buying home insurance to be able to easily compare options and make informed and objective decisions, just like they shop on Amazon. We wanted to improve the experience of
Feifs adds that the launch is “just the beginning,” suggesting Amazon may expand into other insurance categories over time. This is the first time the company has set up an insurance sales outlet. Amazon’s initial insurance products include product warranties and third-party seller insurance.
This marks Amazon’s latest foray into the world of finance. The company already offers lines of credit to merchants who sell goods on its platform. It also offers buy-now-pay-later loans that allow shoppers to pay off their purchases in monthly installments through partnerships with fintech companies. agree withand in the UK with major banks barclaysThe company last year Launched Insurance for SME Customers in England
Ben Wood, an analyst at research firm CCS Insight, said the move means Amazon is “reinvigorating efforts to further diversify its business as it emerges from the pandemic and pressure on traditional activities increases. ‘, he said.
The company “has a wealth of consumer data that it can use as it expands into new areas,” Wood told CNBC. cannot be underestimated and we will continue to grow our business.”
Amazon saw a surge in sales on its site after the 2020 Covid-19 outbreak and restrictions on going out pushed shoppers online. But the company’s stock has fallen more than 30% this year, with rising interest rates hurting tech stocks and investors expecting e-commerce sales to soften as the cost of living crisis hurts sentiment. Add to that the fact that Amazon is about to enter a tough holiday shopping season. blackout warning This winter due to gas supply disruptions caused by the Russian-Ukrainian war.
Earlier this year, Amazon increased the price of its Prime subscription service, which offers faster delivery times and TV and movie streaming, from $119 in the US to $139. This highlights the challenges posed by supply chain disruptions, labor constraints and high inflation.I saw the price of Prime in Europe steeper climb. Higher subscription costs Helped boost Amazon’s revenue It was up 7% to $121.2 billion in the second quarter. Amazon is expected to release third quarter numbers later this month. In July, the company forecast third quarter revenue growth of 13% to 17%.
Amazon’s entry into the insurance market comes amidst the hype for so-called insurance technology (insurtech). A significant number of start-ups are garnering significant cash from investors, and the proposition is that insurance is a market in dire need of digitization. For example, his Wefox, a German insurtech company, raised $400 million in a recent round, valuing the company at $4.5 billion. Tough Fintech Funding Environment.
– CNBC’s Arjun Kharpal contributed to this report