Amazon is set to expand its financial services portfolio in the United Kingdom with the launch of its new Amazon Insurance Store, which will offer home insurance policies through partnerships with three local insurance providers, Ageas, Co-op, and LV+ General Insurance. The e-commerce giant is set to pocket a commission on each sale from its partners, similar to the business model used by price comparison sites like Comparethemarket and Moneysupermarket.
Through the new Amazon Insurance Store, customers will be able to obtain home insurance quotes by filling out a questionnaire that asks them questions about their home insurance needs. The service will then show them a list of quotes from Amazon’s insurance partners, along with reviews and star ratings from other customers. Customers will be able to pay for their chosen policy using Amazon’s online checkout.
Amazon’s move into the insurance market comes amid the growing trend of insurtech or insurance technology, with several startups receiving sizable sums of funding from investors. Wefox, a German insurtech firm, recently raised $400 million in a funding round valuing the company at $4.5 billion, a 50% increase from its previous funding round, despite a difficult fintech funding climate.
Jonathan Feifs, general manager of Amazon’s European Payment Products, stated that the Amazon Insurance Store was created to improve the experience for customers shopping for home insurance, allowing them to easily compare options and make informed decisions.
The service will initially be offered to select customers and will be available across the UK by the end of 2022. With its foray into the insurance market, Amazon joins other tech giants such as Google, which has been testing its own insurance comparison site in the US.