Brits would buy cover from tech giants

More than 30 per cent of UK consumers in the UK would purchase insurance from Google, Amazon, Facebook etc.

New research has found that more than 30 per cent of consumers in the UK would happily purchase insurance from tech giants such as Google, Amazon and Facebook, abandoning traditional insurers.

The report, from GlobalData – which has previously advised that insurers view the entrance of tech giants as an opportunity rather than a threat – suggests that there are billions in gross written premiums waiting to be snapped up by these ‘alternative providers’, potentially heralding a major disruption for the industry as we know it. Amazon has already started quietly recruiting London-based insurance professionals, and it is thought that such companies’ reservoirs of capital and mountains of consumer data – as well as their reputation for generally efficient customer service – could stand them in good stead when breaking into this space.

Daniel Pearce, Financial Analyst at Global Data, said that disruption would be ‘widespread’ should the likes of Google and Facebook enter the insurance market, particularly in the travel, home and motor segments: “The technological capabilities of these alternative providers far exceed those of current market incumbents, and with consumers open to purchasing an insurance product from them, the demand is also there.”