If you follow the insurance space at all, then you have likely heard a lot of rumors over the last year about Amazon or Google getting involved in the industry. While new players to the insurance field are not uncommon, a new insurer with as much resources and brand recognition as Amazon or Google is unique. Those tech companies believe that they are poised to disrupt the insurance industry, major insurers are not quite as convinced. A new study is providing some insight into what the consumers are thinking.
A recent J.D. Power survey found that one-in-five consumers say that they would use Amazon or Google for their home insurance policy if given the option. It’s worth noting that about eight percent of the people who answered this survey already have a home insurance policy with a major provider. That means that there are a lot of people out there who are unhappy with their current insurer.
Of course, we can’t talk about this topic without at least mentioning the fact that Google already tried and failed to establish themselves in the auto-insurance market. In early 2016 the tech giant’s long-rumored-auto-insurance-comparison tool was officially nixed. However, it’s clear that one failure is not enough for Google to write off the insurance industry entirely.
Tom Super, director of J.D. Powers property/casualty practice spoke with the Insurance Journal about Google’s previous insurance foray, saying that “I don’t think they’re done trying,”. “They may present a greater threat to home insurers if they decide to move into that space,” Super continued. “It’s Amazon and Google that are potentially a bigger threat if we’re thinking about outside disruptors.”.
Alex Hageli, director of policy, research and international for the Property Casualty Insurers Association of America, spoke with the Insurance Journal about the converging of technology and insurance. According to Hageli “…the insurance industry has fully embraced technology…It’s on par with anyone else that would engage online. The industry is well-equipped to weather competition from other possible entries into the market. I feel that the insurance industry is much better prepared, much better prepared.”.
There is no doubt that the insurance industry is changing, and that technology is playing a major role in that. The question now is whether tech companies like Amazon and Google are going to play a more direct role in it in the future.