It’s no longer a question of ‘if’ they move into insurance, but rather ‘how?’,” Connolly said.
“Most of Amazon’s revenue comes from the US, UK and Germany – which market will be next?”
He said the “sheer scale of Amazon’s ability to distribute will hurt the comparison sites” regardless of its partners. Connolly added that, depending on the innovation it brings to each market and its partner choice, there is the potential to disrupt all aspects of the value chain.
He recommended that insurers in motor, home, health or life keep their eyes on Amazon’s activity. As for brokers, Connolly said there could be a “tonne of disintermediation” as customers go directly to Amazon for insurance, but added it might only affect those in mainstream business-to-consumer insurance lines.
By Clare Ruel Insurance Times 4th Nov 2020
Follow the link below for more of the article
Over the past six months, insurance market intelligence platform Sønr has seen a huge upswing in clients tracking investment, acquisitions and innovation activity by Amazon. For Matt Connolly, Sønr’s founder and chief executive, the best case scenario is that Amazon could push insurers into a back office function. However, in the worst case, incumbent insurers could lose significant market share. “It’s no longer a question of ‘if’ they move into insurance, but rather ‘how?’,” Connolly said.
unknownx500
