Amazon UK takes a careful approach to selling insurance.
In the UK, Amazon has opened a tiny online insurance shop with an emphasis on residential coverage.
There are only three insurers on board, and more are scheduled to join next year.
The Amazon Insurance Store will initially only be accessible to a select group of people with Amazon UK accounts, and payment will be deducted from the same credit card as is used for other purchases.
Although this is a modest beginning, Amazon has long been interested in the UK insurance sector.
It collaborated with the London-based broker Insuretech last year to provide small and medium-sized enterprises with a selection of insurance.
According to Jonathan Feifs, general manager of Amazon’s EU payment products, buying insurance online is “a well-established practise,” especially in the UK.
He went on to remark that he thought Amazon’s product would be less complicated and opaque than that of its rivals, though he did not guarantee that it would be the least expensive.
The ease of use, rather than price, is what sets Amazon apart from the competition, according to Susannah Streeter, senior analyst at Hargreaves Lansdown. “As Amazon has demonstrated in its retail marketplace, it may not be the cheapest supplier in town,” she said.
With its latest endeavour, the IT giant joins reputable websites like ComparetheMarket and MoneySupermarket in the cluttered insurance comparison market.
In order to keep insurance rates artificially high by prohibiting insurers from advertising more cheaply elsewhere, ComparetheMarket was fined roughly £18 million in 2020. After a successful appeal, the judgement was recently reversed.
With fewer surveys and no need to leave the site after an insurance policy was chosen, Amazon said it was providing a “simplified” experience.
Additionally, it stated that it would include customer feedback and reviews about specific insurance providers as well as how frequently they accepted claims under the proposed policy.
Customers of the tech giant’s premium service, Prime, won’t be the only ones allowed to shop at the new insurance store.
The business will charge insurers a sales commission, but it would not specify what percentage it would be.