Everyone is selling it
21 Dec 2017
Insurance seems to have caught the eye of some far-reaching companies in recent times - Amazon, UK supermarkets, Tesla and Uber competitor BlaBlaCar all looked at it and now Auckland airport has joined in.
Internet-sales giant Amazon is currently recruiting insurance professionals in London in a bid to disrupt the insurance market in countries throughout Europe. “Amazon has a positive reputation for putting customers’ needs at the heart of its propositions,” GlobalData analyst Patricia Davies said. “This level of trust is something the insurance industry has really struggled with.
“If insurers are not careful, they may be pushed out of having a direct relationship with customers and be relegated to the role of a price-driven risk carrier at the back end,” she said.
Uber’s rival BlaBlaCar, which has its headquarters in Paris, France, and has attracted some 50 million drivers and passengers to its app, which is looking to potentially step into the insurance realm. “The long-term vision is that we could become an insurance broker based on driver ratings and other data we collect about travel routes,” co-founder and chief executive officer Nicolas Brusson outlined in a Bloomberg interview. “We could become a new distribution channel for insurance on the Blablacar user platform. It’s a side business that could dominate revenue.”
UK’s supermarket giants Tesco and Sainsbury’s both provide financial products through their respective subsidiary banks, what’s interesting to note is how they’re using what they know about the British grocery-shopping public for their insurance proposition. According to a Reuters report, both chains offer discounts to prospective policyholders based on their shopping behaviour. Think telematics but in the context of how you fill up your grocery cart.
Meanwhile closer to home Auckland Airport has seen a gap in the market and will sell insurance direct to those passing through their terminals. Cigna insurance in partnership with the Auckland airport is hoping to grow its market share over time with a competitive product.