Amazon launches homeowner's insurance aggregator service in the UK

On Wednesday, 19 October 2022, Amazon announced the launch of its new homeowner's insurance aggregator service in the UK. The platform features policies from three insurers: Allianz, Ageas and Co-op. The website will be working at 100% capacity by the end of the year.

This announcement has strongly impacted several stakeholders in the UK insurance market, notably brokers and online aggregators. As an example, Moneysupermarket, has lost more than 15% of its value on the London Stock Exchange in one session.

The UK's decision to launch an insurance aggregator service seems to be carefully studied. A quarter of the country's homes are not yet covered by homeowner's insurance, which makes it a potential target for Amazon. The regulations are also favorable to newcomers across the Channel and homeowner's insurance premiums are 50% to 100% more expensive than in France.

It should be noted that this is hardly Amazon's first quest in the insurance business. In 2018, the e-commerce giant made a breakthrough in the Indian motor insurance market. In 2021, it offered third-party liability coverage in the United States in collaboration with broker Marsh.

However, not all of Amazon's attempts to gain share in various insurance markets were fruitful. In 2021, Haven, a health insurance joint venture linking Amazon, bank JPMorgan and insurer Berkshire Hathaway, ceased all of its US operations.