amazon home insurance

Amazon (NYSE: AMZN) is launching a home insurance comparison service in the UK as the e-commerce and cloud giant diversifies its revenue stream. It is also betting on healthcare and earlier this year announced the acquisition of One Medical for $3.9 billion.

The home insurance comparison service has been named Amazon Insurance Store and would show quotes from third-party insurance companies. Currently, Amazon has partnered with three insurance companies, including Ageas, Co-op, and LV+ General Insurance. Gradually, it would add more insurance companies to the platform.

To begin with, the service would be available for only select customers. However, by the end of the year, the company would roll out the service to all UK users. Users would need to fill up a questionnaire detailing their home insurance needs.

The platform would then show quotes from different insurance companies along with user ratings and claims acceptance ratio. Amazon would earn a commission if a user buys insurance from the platform.

Amazon described its insurance store as “a new, simple, and convenient way for UK customers to shop for home insurance.” In the press release, Jonathan Feifs, general manager of Amazon’s European Payment Products said, “Finding the right home insurance policy can be a time-consuming and confusing task, with quotes that often leave out essential coverage in order to lead with the lowest price.”

He added, “When we set out to create the Amazon Insurance Store, we wanted to improve the experience for customers shopping for home insurance so they could easily compare options and make an informed, objective decision—just like shopping on Amazon.”

Amazon Set to Offer Home Insurance Comparison Store in the UK

Amazon is also looking to standardize the insurance offering on the platform. In its release, it said, “All policies in the Amazon Insurance Store start with the same level of cover, called the Amazon Standard of Cover, which includes protection for some of the most common home insurance claims.”

The company said that it conducted intensive research to find out the most sought-after aspects of home insurance.

Financial services could be a key growth driver for Amazon. Notably, Apple’s CEO Tim Cook believes that financial service has the potential to become the next big industry for the company. Apple already offers several financial services including a co-branded credit card and BNPL (buy-now-pay-later).

While Apple stock has also plunged this year, it is the best-performing FAANG stock of the year. Warren Buffett also added Apple shares in both the first and second quarters of 2022. We have a guide on how to buy Apple stock.

Big Tech is Also Going Big on Healthcare

Along with financial services, Big Tech companies are also going big on healthcare. Last month, Alphabet led a $1 billion investment round into Verily which is its subsidiary focused on healthcare.

TikTok parent ByteDance also acquired a hospital chain in China. The acquisition had raised eyebrows as China has been against tech companies entering into other industries.

Among other tech companies, Apple, and Microsoft have also acquired tech companies. Apple believes that healthcare would be its “greatest contribution to mankind.” Apple has been gradually increasing its presence in the healthcare industry.

Can Amazon Disrupt the Healthcare Industry?

Amazon is known to disrupt the industries that it enters. The company has a strong network effect and the mere announcement of Amazon entering an industry sends shockwaves among incumbents.

With its foray into home insurance comparison in the UK, Amazon seems to be testing the waters. If successful, the company might launch similar services in other markets, including the US, which is its largest and most profitable market.

With e-commerce and cloud industry growth slowing down, Amazon is looking at other ways, both organic and inorganic, to revive the growth. Along with One Medical, it has also announced the acquisition of iRobot-maker Roomba.

The company is also looking to protect its margins and has increased Prime prices in several markets, including the UK.

Most Wall Street analysts are bullish on Amazon stock. Earlier this month, Bank of America reiterated its buy rating on Amazon stock.

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