Amazon Braces For UK's Insurance Market With Latest Offering

Anusuya Lahiri
1 min read
0
In this article:

  • Amazon.com, Inc (NASDAQ: AMZN) launched a portal for buying insurance in the U.K., challenging veteran price comparison sites.

  • Amazon launched a home insurance comparison service a week after Apple Inc (NASDAQ: AAPL) announced new high-yield savings account with Goldman Sachs Group, Inc (NYSE: GS), the Financial Times reported.

  • Amazon already offers online payments, co-branded credit cards, gift cards, and installment-lending services, including a "buy now, pay later" partnership with Barclays PLC (NYSE: BCS) in the U.K.

  • Also Read: FTC Probed Visa and Mastercard For Anticompetitive Practices Involving Online Debit-Card Routing

  • In insurance, Amazon offers extended warranties for some products purchased through its online store and, in India, car insurance via a partnership with Acko.

  • But launching an insurance aggregator in the U.K. could pave the way for a more expansive push into personal finance products in one of its largest markets outside the U.S.

  • Amazon wants its portal to be a direct competitor to sites such as Moneysupermarket, Uswitch, Compare the Market, and GoCompare, although it currently only has three insurance providers.

  • The portal will allow customers to compare and purchase buildings and insurance from various providers without leaving its website.

  • The portal will also allow customers to review their providers.

  • Amazon will take a commission from each sale and ringfence the customer data collected from its other business units during the application.

  • U.K.'s latest regulations prevent "price walking," a gradual increase in premiums when customers renew yearly.

  • Price Action: AMZN shares traded higher by 0.03% at $116.40 in the premarket on the last check Wednesday.

  • Photo by christian wiediger via Unsplash

 

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement

Recommended Stories