Amazon announced on July 23 that it launched auto and bike insurance that can be purchased 100% online via Amazon Pay, its electronic payment processing subsidiary.
This insurance is available only in India, Amazon confirmed to the Insurance Portal. To deliver this offering, the American multinational says that it joined forces with Acko, a digital insurer based in India that received funding not only from the e-commerce giant, but also from Intact Ventures, the Intact Financial Corporation subsidiary that invests in the insurtech world.
Acko supported by Intact
“By investing in Acko Insurance, we have gained exposure to two major trends in the emerging market insurance ecosystem,” Karim Hirji, Senior Vice President & Managing Director, Intact Ventures, told the Insurance Portal. “Firstly, Acko has been able to use non-traditional data sources to create micro-insurance products that best suit the needs of millions of Indian residents; these products include rideshare passenger protection, flight delay, and lost luggage insurance. Secondly, Acko is leading the trend of embedded insurance, which is the concept of selling traditional insurance products through non-traditional channels, including through Amazon in India.
Intact Ventures holds “a small stake” in the Indian company, with which it has “developed a collaborative relationship,” Hirji says. Intact Ventures thus offers Acko “assistance in their development of motor insurance products and claims processes,” he adds.
Amazon deepens its foray
The partnership between Acko and Amazon will allow clients in India to buy insurance policies for two and four-wheeled vehicles at “low prices” via the Amazon app, “in less than two minutes with no paperwork.” Clients can also obtain “extra benefits” including “additional discounts” if they are members of Amazon Prime, Amazon’s paid service.
The platform not only allows purchasing, but it also lets customers get a quote, download a policy, file claims online or obtain an “instant cash settlement” for low value claims.
Amazon Pay says this partnership “marked its foray in the insurance space.”
The pay service is already available in India, the United States, United Kingdom and France, among others, but not yet in Canada.
This is not parent corporation Amazon’s first venture into the insurance world. Its product Amazon Care offers employee benefits to employees and their families.
