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=.
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.
Amazon isn’t the first Big Tech company to give the UK insurance market a try. Google launched a tool called Google Compare in 2012, which compared credit cards, mortgages, and care insurance. The platform was shut down in 2016 after not gaining much traction and producing little revenue.
Amazon takes on the financial markets: The Big Tech firm is no stranger to the UK financial markets, so the new product launch doesn’t come as a huge shock.
Our take: Amazon’s competitors appear to be well-established, with many of them benefitting from an uptick in consumers searching for price deals amid rising inflation. But the Big Tech firm has an advantage: Many UK citizens are already familiar with the brand and regularly use its other platforms, like e-commerce. If Amazon is able to implement its tool within its existing user experience and deepen its relationship with UK insurers, it will likely end up winning a good part of the market share relatively easily.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.