What Amazon potentially has going for it in the home insurance space is name recognition, lots of consumer data and the ability to analyze it effectively. If it did have a home insurance offering, it would be very convenient for the 49 percent of American consumers that already have an Amazon Prime premium membership.
But with so few details, it’s hard to judge whether there would be a benefit to Amazon or to consumers. Experts say it seems unlikely that Amazon would foray into home insurance without a partner that knows the space better.
“We’ll have to watch and see,” said Megna at Insurance.com. “It could be that this fizzles out, mirroring Google’s experiment with selling car insurance.”
While home insurance companies aren’t yet worried about potential Amazon competition, the company’s announcement does show that the insurance industry is changing.
“Disruption is happening right now,” said McChristian at the Insurance Information Institute. “There are unknowns, and that makes it exciting to be a part of something that has some element of reinvention.”