Both the companies will provide standalone insurance products and also weave it into their various verticals
E-commerce giants Flipkart and Amazon India are preparing to tap into India's fast-growing online insurance market valued at Rs 35,000 crore, after electronics, fashion and groceries.
Sources told Business Standard that both the companies are readying a blueprint to enter the market for the past four months. The original plan was to introduce their insurance products at the beginning of 2019. However, this plan was delayed as the companies took in and adjusted to the new FDI norms that the government released at the end of December 2018.
Moneycontrol couldn't independently verify the report.
"We are pleased to receive the corporate agency licence from the Insurance Regulatory and Development Authority. We are exploring the landscape in India and are looking at insurance solutions for our customers," Amazon India spokesperson told the paper, while Flipkart did not respond.
Both the companies will provide standalone insurance products and also weave it into their various verticals. "Amazon and Flipkart both have travel and ticketing vertical on their platform. They can provide travel insurance as part of the package. Similarly, they can provide theft and damage insurance for high-value electronics. They will soon start selling general and life insurance," a source told the paper.
To grow this business, Amazon may enter into deals with multiple firms, while Flipkart is also on the lookout for insurance companies to work with.The companies have already started in a small way last year. Flipkart got a corporate agent licence last year. It also launched its 'Complete Mobile Protection' programme which provided insurance solutions for all leading mobile brands on its platform, with Bajaj Allianz General Insurance. Similarly, Amazon invested $12 million in online insurer Acko General Insurance. Interestingly, Flipkart co-founder Binny Bansal also invested in the same firm.