Amazon to start offering insurance to UK businesses
By Carolyn Cohn
LONDON (Reuters) – Amazon.com Inc (NASDAQ:) is to start offering insurance to small and medium-sized UK business customers, the technology giant’s first foray into business insurance in the country, broker Superscript said on Monday.
Superscript will offer coverage to members of Amazon’s Business Prime program, including contents, cyber, and personal indemnity. A spokesperson for Superscript said that the policy would be covered by major UK insurers. As a way to attract businesses to their services, they will receive a 20% discount on current rates.
According to Capgemini’s recent survey, more than half of the customers would be willing to purchase insurance from other players like big tech companies or insurtech firms.
Cameron Shearer (co-founder, CEO, Superscript) stated in a statement that the industry must bridge the gap between customers and insurers by offering a fast, seamless buying process that is customer-centric.
Amazon’s entry into UK insurance is a result of U.S. insurtech Next Insurance’s March announcement that it will offer small business coverage through Amazon Business Prime.
“As businesses come out of the pandemic and gradually resume normalcy, we want customers to have the best-in-class tools to run their business,” Molly Dobson, Country Manager for Amazon Business UK & Ireland, said in the statement.
The fear that tech companies will take their business is shared by financial institutions, who are relying on strong brand names and easy access to the products of tech players.
However, industry sources claim that tech firms and banks are more likely partners than to compete in the highly-regulated financial sector due to the cost and difficulties for outsiders.
Amazon provides warranty insurance as well as “buy now and pay later” services for Britain.
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