Amazon is betting big on insurance and is working with Bengaluru-based startup Acko to offer a wider range of products and a smoother buying experience to customers on its platform in India.
The “deep integration” with the online insurance company will be the next big financial offering from the American ecommerce major after it launched digital payments through Amazon Pay. It will make insurance, like payments, an integral offering.
“… we are constantly evaluating new areas and opportunities to connect with and serve our customers, insurance being one of them. We are looking at various insurance solutions that provide a convenient and seamless experience for our customers,” an Amazon Pay spokesperson said.
At present, Amazon Pay offers products like merchant payments, recharges, FASTags and gift cards. It will soon add insurance for vehicles on the platform and this is being powered by Acko.
It is not the first time that Amazon will sell insurance. It sells cover for gadgets, accessories and other goods on the platform. But with Acko, Amazon is looking at an integration that will offer a seamless buying experience to consumers.
The work was on and it would take some time for the product to go live, sources told Moneycontrol. It might be tested first for Prime members and then extended to others. Amazon Prime is the company's subscription platform.
The plan is to offer insurance as a category on the home screen of Amazon Pay.
India is one of the key markets for Amazon where bill payments, mobile recharge and similar services are splashed on the home screen. Insurance could find a place there as well.
Amazon had in 2019 received a corporate agent’s licence from the Insurance Regulatory Development Authority of India to sell third-party products.
It has been selling insurance products from companies such as OneAssist and Acko. It also allows payments of premiums for almost every insurance company in India.
This integration is a step forward for the ecommerce giant, which has big plans for the fintech domain for its Indian business.
Products like bike and car insurance would open as a drop-down on the Amazon home screen, a source said.
For customers, buying and activating insurance would be much easier.
At present, the insurance is purchased on Amazon but the buyer has to go to the company’s website to activate the policy.
“Being a digital insurer, we create innovative products that help customers in protecting themselves from different types of risks. We partner with digital ecosystem players to enable us in this journey of offering relevant products and delivering a seamless experience,” an Acko spokesperson said.
In May 2018, Amazon led a $12-million funding round in Acko and the two have since been working closely.
Acko was founded in 2016 by Varun Dua who had first started an insurance marketplace Coverfox.
Backed by Accel Partners, Saif Partners, Binny Bansal and few other marquee investors, the startup is trying to broaden its footprint in India’s $10-billion insurance industry.
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