The news: Amazon took a step deeper into the financial world by launching a home insurance comparison platform in the UK, per Insurance Journal.
How does it work? Through the Amazon Insurance Store, the US-based company partnered with three major UK insurers: Ageas UK, Co-op, and LV=.
- The platform lets customers compare home insurance prices among the three insurers. They can also access customer reviews, insurance company ratings, and the rates at which claims were accepted for the policies offered.
- Amazon earns a commission on each sale made on the platform.
Amazon has been hinting since 2018 that it would offer an insurance comparison tool in the UK. Now that it’s launched, Amazon is working on adding more insurers to the platform early next year.
Price comparison competition: Four major insurance price comparison websites are already available in the UK. In addition to home insurance, they allow customers to compare prices on energy, car insurance, travel insurance, mortgages, credit cards, and loans.
- Each of these comparison platforms—Moneysupermarket, Comparethemarket, GoCompare, and Confused.com—lets customers compare prices from more than 100 different insurers.
- In 2021, nearly 30% of UK consumers purchased home insurance through a price comparison website, according to GlobalData.
- Moneysupermarket, the predominant site, recently reported outstanding Q3 results, citing the cost of living crisis in the UK as a driver behind the 42% growth in its Money division, which helps users compare prices on credit cards, loans, and mortgages.