Brokers could face competition from “insurtechs” like Amazon and Google

Fifty-five percent of consumers would be interested in buying a hypothetical insurance product from Amazon versus traditional insurance carriers. (Photo: Shutterstock)

Online shopping has grown in popularity during the pandemic. Now many consumers would consider getting insurance at some of the places where they buy clothes, books or groceries, the statement said survey data by breeze.

Tech companies are pouring money into what’s known as “insurtech.” CB Insights estimates that global investment reached $10.5 billion through the third quarter of 2021, up 48% from the year-end 2020 total.

The big question is whether consumers would turn to Amazon, Facebook, or Google for insurance. Breeze put this question to the test by surveying 1,500 adult consumers. The majority would buy insurance from Amazon, but not Facebook or Google. Fifty-five percent of consumers would be interested in buying a hypothetical insurance product from Amazon versus traditional insurance carriers. Only 46% and 38% said the same for Google and Facebook, respectively.

Amazon has already ventured into health insurance with the launch of Haven in 2018 and more recently Amazon Care. In addition, Amazon has explored other financial services such as checking accounts, so consumers are familiar with Amazon and personal finance.

“Insurers should expect leading technology companies like Google and Amazon to extend their influence in the sector,” it said PropertyCausalty360. “By leveraging their intelligence and analytics for state-owned companies, those companies could create a new stream of digital assets. Transport companies can approach such firms and form partnerships that can personalize insurance products. Tech companies bring creativity to the insurance market and set a new standard in product distribution.”

In fact, 59% of respondents would be interested in purchasing health or life insurance from a health and wellness company or pharmacy such as CVS or Walgreens rather than a traditional carrier, while 41% would not. Fifty-one percent would be interested in getting disability insurance with a payroll and human resources company like Zenefits or Bill.com rather than a traditional carrier. 49 percent would not do this.

“It’s an opportune time for technology companies to secure a seat at the insurance table,” concluded Breeze. “They have robust data and technological infrastructure that could be used to underwrite and sell insurance products.”

Comments are closed.