If insurers do not meet expectations someone else will. That leaves just risk transfer for customers and no relationship with the customer.
That will result in lower profits as a result of commoditisation, insurance sold at point of sale and a long tail of insurers sharing a dwindling pot of premiums and profits.
That's the scale of the Amazon threat which is visualised startlingly by Altus Consulting.
But Insurers can "Out Amazon " Amazon as long as they act now.
The real risk, added Rixford, is when we look further down the road. “As more and more carriers either look to create their own call centers or funnel leads only to key partners, that’s a strategy that Amazon or Google, or anybody out there, might take advantage of by becoming the source of leads,” he said. “However, while Amazon is extremely ubiquitous – it’s all over the place and they have lots of reaches into people’s world – it’s not the end-all, be-all.”
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