Last year, Amazon opened their first insurance offering: Amazon Project, providing extensions to manufacturers’ warranties. Recently, we’ve seen a boost in their recruitment ads, suggesting they’ve got big expansion plans for their insurance sector.

Amazon have recently launched a line of over-the-counter healthcare products in the US, and have created an independent healthcare company in partnership with JPMorgan Chase and Berkshire Hathaway – to the delight of their customers.

Amazon insurance is likely to be a formidable force for legacy insurers and insurtech start-ups alike due to Amazon’s consumer orientated approach. Historically, customers don’t have the best regard for insurance companies. Amazon may change that by adding a friendly face to the insurance market.

In fact, research is already favouring Amazon over traditional insurers; a recent study found that 35.8% of customers would use an Amazon health insurance plan. Considering the size of their consumer base, this is a worrying statistic for insurance companies and insurtech startups.

For more information, please contact Nick Pester.