Tech Companies Could Start Offering Insurance Soon

It’s hard to find anyone these days who has not bought something from Amazon, Apple or Google. The pervasiveness of these tech giants, in the U.S. market in particular, is undeniable, and seems to only be growing. So, what’s the next step for big tech? A new report suggests that finance could be the future, particularly for Amazon.

A report by consultants from Bain & Co. found that tech companies could have a very profitable future in banking. In fact, Amazon is reportedly already in talks with JPMorgan Chase and other major banking institutions to create a checking account offering aimed at younger adults, or those looking to get their first checking account.

Bain believes that this will be the first of many steps as Amazon moves into the financial sector. Given that Amazon already has millions of users who trust the company with saved credit card information, this move into financial products makes a lot of sense. According to Bain’s consultants, after checking accounts Amazon will likely move into lending, mortgages, and, yes, even insurance.

As part of their report, Bain surveyed over 133,000 consumers across 22 different countries. They found that over half of U.S. respondents expressed a desire to buy a financial services from an established tech player. Predictably, Amazon was listed as the most trusted tech companies with Apple and Google taking the second and third spots, respectively.

Bain points out that Amazon is in the unique position to follow their customers as they age. Starting with their first checking account, then leading into insurance purchases and, eventually even a mortgage.

The evolution of tech services is inevitable, remember Amazon started out as an online bookstore. Moving into financial projects makes the most sense, and it seem as though companies like Amazon are already making moves in that direction. So, what exactly does that mean for the insurance sector? Are we going to be shopping car-insurance quotes on Amazon soon? It’s certainly possible! For now, all we can do is keep an eye on these major tech companies as they begin to make their first forays into the financial space.

Sources:
https://www.insurancejournal.com/news/national/2018/04/17/486613.htm