To start, it’s partnering with three local insurers Ageas UK (OTCPK:AGESF) (OTCPK:AGESY), Co-op, and LV=General Insurance. Amazon (AMZN) will add more insurers the store early next year, it said in statement.
The Amazon (AMZN) Insurance store is rolling out to select customers Wednesday and will be available to all U.K. customers and its U.K. mobile app by the end of the year. The ecommerce behemoth has had a history of roiling stocks when it enters a new sector. For example, two years ago its entry into the pharmacy business had investors nervous about drugstore stocks.
The store provides customers with like-for-like quote comparisons, a streamlined questionnaire, and a checkout process integrated with amazon.co.uk.
All policies in the store start with the same level of coverage, called the Amazon Standard of Cover, which covers some of the most common home insurance claims.
As the move involves teaming up with existing insurers, and the initial rollout is limited, the news isn’t having much affect on U.S. P&C insurers. Progressive (PGR) stock is rising 1.1%, Allstate (ALL) -0.6%, Travelers (TRV), which reported Q3 results today, +2.7%, and Chubb (CB) +0.9% in Wednesday morning trading.
In 2018, Amazon (AMZN) was reported to be considering a move into home insurance on the basis that smart devices could monitor homes for threats, which can lower premiums. Not all of the giant’s ventures work out. In August, the Washington Post reported that Amazon (AMZN) will end its telehealth business by the end of the year.
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