AMAZON in Insurance

 Amazon has turned its nascent interest in the insurance market into fully fledged products.

The earliest reported foray into the space was in April 2016 with Amazon Protect, a white-label service in the UK that provides accidental and theft insurance on consumer goods ranging from headphones to kitchen appliances. Claims are underwritten through a partnership with The Warranty Group’s London General Insurance Company. The program has since expanded to other European countries including Spain, Italy, Germany, and France.

In June 2018, The Warranty Group, which underwrites Amazon Protect in the UK and abroad, was purchased by Assurant for a rumored $2.5B. The acquisition could make it easier to expand Amazon Protect to new markets that are under Assurant’s umbrella of lifestyle protection products.

Amazon also teamed up with the insurtech startup Next Insurance to provide eligible Business Prime members with access to small business insurance policies. In less than 10 minutes, users can purchase professional liability, commercial auto, general liability, and other types of insurance coverage. Small business owners get a certificate of insurance digitally. Amazon Business Prime customers also get a 10% discount for purchasing professional liability and general liability policies.

NEXT Insurance is also a part of the new Amazon Insurance Accelerator, a marketplace where sellers can purchase product liability insurance. In addition to the marketplace, Amazon announced it was expanding its A-to-Z Guarantee. It now generally covers personal injury and property damage claims under $1,000, but could cover higher claims if necessary.

In May 2018, Amazon made an early insurance push in India by leading a $12M investment in insurtech startup Acko, as well as taking part in a $60M funding round closed in 2020. Acko offers traditional car and bike insurance policies, but it is increasingly focused on “internet economy” deals, which primarily consist of e-commerce, travel, and ride hailing-focused products such as an in-trip insurance program with Ola. On its new investor, Acko CEO Varun Dua said,

“The idea is to find some way to collaborate in the future. We’re a new age insurance company and [Amazon] believes it can create value.”

In September 2018, Amazon made its interest in the insurance market in India even clearer when it filed with the country’s Registrar of Companies to begin selling its own health, life, and general insurance products. In March 2019, Amazon received its corporate agent license from the Insurance Regulatory and Development Authority of India, clearing the way for the company to proceed further.

Amid the Covid-19 pandemic, Amazon began offering cost-free health insurance to its sellers in India, with Acko handling the policies, claims, and reimbursement.

In September 2019, Amazon rolled out a pilot for Amazon Care, a healthcare service for its employees in the Seattle, WA area. It came as part of the company’s joint venture with JPMorgan Chase and Berkshire Hathaway, called Haven Healthcare. But this venture disbanded in early 2021 as many of its initiatives failed to take off.

Amazon instead moved forward on its own — with great success. As of 2022, the virtual Amazon Care service is available across the US, and the company plans to launch in-person services in another 20 cities this year. The virtual services allow patients to consult with clinicians any day of the week, while patients in locations where in-person care is available can schedule home visits. Amazon has also expanded the service to other employers, including Silicon Labs and TrueBlue.

Spain-based bank BBVA has also begun to operate product sales on Amazon. This relationship could lead to the sale of the bank’s various products, including insurance.

Because Amazon would get a cut of each financial service transaction made on its platform, it may look to get other banks and financial institutions to sell their services online.