Internet shopping website Amazon is looking to create its own UK insurance comparison site, according to Reuters.
The news agency said that ‘three industry executives’ had revealed that they had sat down for talks with Amazon about the possibility of opening a comparison site. One of the sources said there was no imminent plans to launch the service, and it is currently unclear what kinds of insurance would be available on the site.
Danielle Cripps, Insurance Analyst at GlobalData, a data and analytics company said that the move could be good news for insurers: ‘‘The aggregator market has lacked innovation over recent years to which Amazon could bring something new. Some insurers could seek to build their relationship further, adding insurance skills to Amazon Alexa or using Amazon’s marketplace of products such as smart home devices or wearables to further their product offerings.”
This news caused the shares of potential rival services Moneysupermarket, GoCompare and Admiral to drop on 16 August.
Morningstar analyst R.J. Hottovy told Reuters: “As Amazon becomes a larger part of the home, whether it’s products delivered to the home, security monitoring, home services like Wi-Fi installation, you can make the case that insurance is the next logical step for this company.”