Editor Yannick Guerry mulls over the potential fallout and ramifications if digital retailer Amazon decides to add insurance as a string to its bow

With the recent FCA proposal to ban dual pricing, tech giant Amazon has a key opportunity to enter the insurance market, but this could be to the detriment of price comparison sites.

In September, Amazon partnered with an Indian insurtech on a motorcycle and car insurance proposition - much to the surprise of the insurance industry, as the tech giant’s speciality is smart home products.


Yannick Guerry

As for brokers, there could be a “tonne of disintermediation” as everything would be served up on one plate for the customer – and that would include insurance. Therefore, the broker would be bypassed.

If Amazon creates its own insurance offering, it could really bring disruption to the market.

Although if it acts as a broker with an insurer panel, it could alter competition in the market because Amazon wins in the distribution stakes with its huge customer base and the element of ‘trust’ already present – the latter being something that the insurance industry has long struggled with.

However, Amazon has also made partnerships within healthcare over the years, which could signal its next venture.

So, with three potential lines – home, motor and health insurance - the tech giant is primed to make some noise in an industry that is struggling to innovate at the same pace.