Using their General Insurance Capability Model, Altus has analysed where Amazon might have the most success in the insurance broker space.
The areas highlighted are:
- Pricing and Underwriting: The fact that Amazon does not have the actuarial skills to be a full-stack insurer doesn’t matter – so long as Amazon acts as a Broker or MGA, it will succeed.
- Channel Management: Amazon could harness its Marketplace to launch an aggregator that competes in the Personal Lines market, as well as with price comparison sites.
- Product Development: Its enormous customer base enables Amazon to launch and test new products much faster than traditional Brokers, who can take weeks or months to bring a product to market.
- Policy Enquiries: It goes without saying that Amazon’s Alexa could easily integrate into the insurance market, given that (inferior) Voice Assistants are already used by some insurers.
Market incumbents mustn’t sit back and wait for this to happen – the time is now to combat the threat.
Feature first seen in youTalkinsurance on 05/06/2018