According to a report by Business Standard, Flipkart and Amazon are working on plans to enter the insurance industry in India. Online insurance is one of the fastest growing industries in India, and it is currently valued at around Rs.35,000 crore. The entry of these e-commerce giants into the online insurance industry is likely to change the landscape of the industry.
Business Standard quoted sources from both companies that these two companies have been working on this for the last four months. The companies are reportedly looking for partners who have a lot of experience in the insurance industry. These sources indicate that both companies are likely to enter the life insurance as well as general insurance industry in the country.
Both Flipkart and Amazon originally planned to launch their insurance business within the first half of the year 2019. However, these plans got delayed due to the changes in the e-commerce foreign direct investment (FDI) norms in the country.
Recently, Flipkart co-founder Binny Bansal invested in general insurance firm Acko. It is worth noting that Amazon has already invested in this firm. Both companies have already entered the insurance space in a small way through their platforms. For instance, Flipkart partnered with Bajaj Allianz General Insurance last year to provide ‘Complete Mobile Protection’ for the mobile brands sold on its platform.
Both Flipkart and Amazon have expanded into various businesses over the last few years including fashion, consumer electronics, and groceries. The massive growth witnessed in the insurance industry has made it an attractive investment for these firms.
A spokesperson for Amazon commented that the company is pleased to receive license from the Insurance Regulatory and Development Authority of India (IRDAI). He also noted that the company is exploring the insurance landscape in India and aims to provide a seamless experience for customers.
Source: Business Standard