Amazon, the world’s largest online retailer is planning to enter the insurance industry and strengthen its financial services offering in India.
Amazon India plans to sell life, general and health insurance products as per its filings with the Registrar of Companies. Amazon is likely to help its customers by helping them search a suitable product, followed by the delivery and other post-sales aspects.
Amazon had started working on its bid to become a part of the insurance industry in India a few months back when it invested $12 million in Acko General Insurance Company, an insurtech company which offers its customers insurance products online.
Amazon is not the first online retail company planning to enter an industry which is expected to be worth $280 billion by 2020. Flipkart, which is backed by Walmart has already sought approvals from the insurance regulatory body IRDAI to sell general and life insurance products in India. Paytm which is funded by Alibaba and Softbank already has a corporate agency licence.
According to a report by Reuters, Amazon executives in August had met some of Europe’s top insurance firms in order to see if they would be interested in contributing products to a UK based price comparison website which would have been a gateway for the online retail company to enter the region’s financial services.
Sources: Bloomberg Quint, Investopedia, Business Insider, Reuters
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