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Amazon Plans for Comparison Site to Expand in Insurance Space
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Amazon (AMZN - Free Report) is firing on all cylinders to bolster presence in the e-commerce space on the back of its aggressive strategies and strong efforts to make an impression on every possible sector.
Currently, the online retail giant is aggressively trying to disrupt the financial services sector through its vast e-commerce platform. Reportedly, the e-commerce giant is eyeing the U.K. insurance market and planning for a price comparison site for insurance products.
In fact, the company is already in talks with European insurance companies in a bid to bring their products on its site.
The latest move is likely to strengthen Amazon’s presence in the digital insurance space.
According to the latest report from MarketsandMarkets, the global digital insurance platform market is expected to grow at a CAGR of 13.8% between 2018 and 2023 and to reach $164.13 billion by 2023.
Moreover, the company’s product offerings are likely to get enhanced which will help it in expanding customer base. Consequently, this will drive the company’s top-line growth.
Coming to the price performance, shares of Amazon have returned 61.3% on a year-to-date basis, outperforming the industry’s rally of 28.9%.
Disruption in U.K. Insurance Market
Amazon’s idea of price comparison site is likely to disrupt the UK insurance market.
The company’s entry poses major threat to the existing comparison sites namely comparethemarket.com, GoCompare and Moneysupermarket.com. Notably, the shares of GoCompare and Moneysupermarket.com declined following the breaking of this news.
Per Reuters, top UK insures like Hastings and Admiral are highly dependent on these comparison sites for their sales growth.
Courtesy to Amazon’s loyal customer base, strategic deals, aggressive policies and advanced technology, we believe the company is well poised to reap benefits from this particular market.
In the last reported quarter, the company led a $12 million investment round in the subsidiary of India-based Acko Technologies named, Acko General Insurance.
Reportedly, the company will become the potential insurance partner of Acko which will enable it to bring insurance products to its e-commerce platform for the Indian customers. This will help Amazon to expand presence in the rapidly growing insurance market of India.
Further, the company offers an insurance product called Amazon Protect which acts like an accident insurance plan for consumer goods.
All these endeavors coupled with the latest move of the company bode well for its strengthening competitive position against Alphabet (GOOGL - Free Report) .
Google’s subsidiary Verily is eyeing the health insurance industry too. In fact, it is aggressively looking into deals with health insurers.
Additionally, Amazon is likely to give a tough competition to Alibaba (BABA - Free Report) and Tencent (TCEHY - Free Report) , which have its own financial services units, by bolstering its presence in the promising insurance market.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Amazon Plans for Comparison Site to Expand in Insurance Space
Amazon (AMZN - Free Report) is firing on all cylinders to bolster presence in the e-commerce space on the back of its aggressive strategies and strong efforts to make an impression on every possible sector.
Currently, the online retail giant is aggressively trying to disrupt the financial services sector through its vast e-commerce platform. Reportedly, the e-commerce giant is eyeing the U.K. insurance market and planning for a price comparison site for insurance products.
In fact, the company is already in talks with European insurance companies in a bid to bring their products on its site.
The latest move is likely to strengthen Amazon’s presence in the digital insurance space.
According to the latest report from MarketsandMarkets, the global digital insurance platform market is expected to grow at a CAGR of 13.8% between 2018 and 2023 and to reach $164.13 billion by 2023.
Moreover, the company’s product offerings are likely to get enhanced which will help it in expanding customer base. Consequently, this will drive the company’s top-line growth.
Coming to the price performance, shares of Amazon have returned 61.3% on a year-to-date basis, outperforming the industry’s rally of 28.9%.
Disruption in U.K. Insurance Market
Amazon’s idea of price comparison site is likely to disrupt the UK insurance market.
The company’s entry poses major threat to the existing comparison sites namely comparethemarket.com, GoCompare and Moneysupermarket.com. Notably, the shares of GoCompare and Moneysupermarket.com declined following the breaking of this news.
Per Reuters, top UK insures like Hastings and Admiral are highly dependent on these comparison sites for their sales growth.
Courtesy to Amazon’s loyal customer base, strategic deals, aggressive policies and advanced technology, we believe the company is well poised to reap benefits from this particular market.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. Revenue (TTM) | Amazon.com, Inc. Quote
Amazon in Insurance Sector
In the last reported quarter, the company led a $12 million investment round in the subsidiary of India-based Acko Technologies named, Acko General Insurance.
Reportedly, the company will become the potential insurance partner of Acko which will enable it to bring insurance products to its e-commerce platform for the Indian customers. This will help Amazon to expand presence in the rapidly growing insurance market of India.
Further, the company offers an insurance product called Amazon Protect which acts like an accident insurance plan for consumer goods.
All these endeavors coupled with the latest move of the company bode well for its strengthening competitive position against Alphabet (GOOGL - Free Report) .
Google’s subsidiary Verily is eyeing the health insurance industry too. In fact, it is aggressively looking into deals with health insurers.
Additionally, Amazon is likely to give a tough competition to Alibaba (BABA - Free Report) and Tencent (TCEHY - Free Report) , which have its own financial services units, by bolstering its presence in the promising insurance market.
Currently, Amazon sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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