Internet-sales giant Amazon is currently recruiting insurance professionals in a bid to disrupt the insurance market in countries throughout Europe.
According to analytics firm Global Data, Amazon is currently recruiting insurance professionals in London to join a new team looking to disrupt the insurance market in the UK, Germany, France, Italy, and Spain.
The online retail giant has already built a solid reputation in providing clear communication to customers throughout the purchasing journey, Global Data said, with technology products such as the Amazon Echo being used as an entry point to providing for customers’ insurance needs.
Patricia Davies, financial services analyst at Global Data, said: ‘‘Amazon has a positive reputation for putting customers’ needs at the heart of its propositions. This level of trust is something the insurance industry has really struggled with, especially after the likes of the PPI scandal.’’
Davies, added, ‘‘The company is in a good position having established itself as a key service provider for households with it’s “Prime” service, as well as offering a TV channel and movie service. We are already seeing a number of new propositions moving away from annual renewal to a monthly subscription basis, which would fit well with Amazon’s current business model.’’
The company’s investment in technology has brought households the Echo and Dot, voice-activated speakers that uses artificial intelligence to support everyday needs.
The analytics firm said that this positions Amazon well for providing insurance needs, as tech in the home will soon define the insurance requirements of an individual household.
“This close and interactive relationship is a long way from the limited annual renewal or claim process touchpoints insurers currently work to.
‘‘If insurers are not careful they may be pushed out of having a direct relationship with customers and will be relegated to the role of a price-driven risk carrier at the back end,” Davies said. “Either way this is a sure sign disruption is on the way for the UK insurance market.’’
In June, Post reported that the retail giant was weighing up a corporate partnership with an undisclosed vehicle manufacturer to sell cars to UK consumers through Amazon’s UK website.
Amazon declined to comment when approached by Post.
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