Yep, it’s almost here. You can’t just summon Alexa to find the cheapest quotes, you still have to fill a form in. But the Amazon marketplace for home insurance has launched and it will be interesting to see how it goes. Here’s the word;
Today, Amazon announced the launch of the Amazon Insurance Store—a new, simple, and convenient way for UK customers to shop for home insurance. The store offers an improved shopping experience for home insurance with like-for-like quote comparisons that customers can trust, a streamlined and simple quote questionnaire, and a checkout experience integrated with amazon.co.uk. The Amazon Insurance Store will start rolling out to select customers today, and it will be available to all UK customers on amazon.co.uk/insurance and the Amazon UK mobile app by the end of the year.
“Shopping online for home insurance is a well-established experience, and our goal is to exceed customers’ expectations when it comes to the Amazon Insurance Store,” said Jonathan Feifs, general manager of Amazon’s European Payment Products. “This initial launch is just the beginning—we’ll continue to innovate and make refinements, all with the aim of delighting customers and providing the most convenient shopping experience possible.”
PARTNERSHIP
In developing the Amazon Insurance Store, Amazon worked with participating insurers to streamline one of the most burdensome aspects of the home insurance buying process: the quote questionnaire. Customers are only asked the essential questions required by insurers in order to receive a quote, simplifying the process. The Amazon Insurance Store also provides a more transparent way to shop for home insurance. As more customers purchase policies, the store will populate customer reviews, star ratings, and claims acceptance rates so customers can make more informed purchasing decisions.
All policies in the Amazon Insurance Store start with the same level of cover, called the Amazon Standard of Cover, which includes protection for some of the most common home insurance claims. In developing the Amazon Standard of Cover, the company conducted comprehensive research on the UK home insurance sector to determine which aspects of home insurance are most sought out by customers. The Amazon Standard of Cover gives homeowners and renters additional confidence when purchasing a policy as it makes it easier to compare like-for-like quotes, review cover inclusions and exclusions, and then add to their policy if needed.
HOW IT WORKS
To purchase a home insurance policy through the Amazon Insurance Store, customers first log into their Amazon UK account and fill out a short questionnaire. After that, customers can compare quotes and further personalise their policy in the areas that matter most to them. If a customer chooses to add to their policy, quotes are updated in real-time to see how an insurer’s policy compares to others. Once a policy is selected, customers can checkout using their preferred payment method on Amazon.
Post-purchase, customers can easily view their policies, change their payment method, and view renewal information through amazon.co.uk or the Amazon UK mobile app. To celebrate this launch, Amazon customers who make a qualifying purchase of a home insurance policy through the Amazon Insurance Store will receive a £10 Amazon.co.uk gift card.
Amazon has partnered with three insurance brands for this initial launch: Ageas UK, Co-op, and LV= General Insurance. Each company has been carefully selected using a number of customer-focused criteria, including reasonable time frames for claims handling and resolution, and delivering on Amazon’s high-bar for customer service. Amazon will add more insurers to the Amazon Insurance Store early next year, giving customers even more selection.
Customers can trust that their information will be safe and secure while shopping on the Amazon Insurance Store. Amazon developed the store using the backend technology customers trust, and the company only collects and shares customer information that’s necessary to operate the store.
INDUSTRY COMMENT
Ben Carey-Evans, Senior Insurance Analyst at GlobalData, offers his view:
“Amazon’s move into price comparison services for household insurance could significantly disrupt a model that has long been dominated by the ‘big four’: Compare the Market, Go Compare, MoneySuperMaket, and Confused.com. The retail giant will offer a serious threat to these staples, as it has a reputation for digital expertise and value in the UK, alongside significant brand recognition—with a total of around 12 million Prime members.
“GlobalData’s Consumer Survey data shows that 29.4% of UK consumers bought household insurance through price comparison sites in the UK in 2021. Of those, 95.7% percentage bought their insurance through one of the ‘big four’. This highlights the extent of their dominance in the market, and this is the model Amazon looks well placed to disrupt. Our 2021 UK Insurance Consumer Survey found that 19.7% of UK consumers were willing to purchase home insurance from Amazon. This shows a sizeable proportion of consumers were open to buying insurance through Amazon before it even offered this service.
“The current cost-of-living crisis will make consumers focus heavily on price and value when choosing policies. However, given its reputation for low prices, alongside its presence within UK households, and its digital expertise, it is likely to have an immediate impact on the market and become the fifth key player.”
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