(Reuters) -Amazon.com Inc. will begin offering insurance to small and medium-sized British corporate customers, the technology giant's first attack on corporate insurance in the country, broker Superscript said on Monday.
Members of the Amazon Business Prime program will be able to purchase coverage from Superscript, such as content insurance, cyber insurance and occupational injury insurance, which a Superscript spokesman said would be taken out by "major UK insurance companies." They will be offered a 20% discount at current prices.
More than 50% of customers are willing to buy insurance from non-traditional players such as large tech or insurtech companies, according to a recent survey of 1
"The (insurance) industry needs to bridge the gap between insurers and customers by providing a fast, customer-centric buying process," said Cameron Shearer, co-founder and CEO of Superscript in a statement.
Amazon's transition to UK corporate insurance comes after US insurtech Next Insurance in March said it offered protection to small businesses in the US through Amazon Business Prime.
"When companies emerge from the pandemic and gradually resume normalcy, we want customers to have the best tools in the class to run their business," said Molly Dobson, Country Manager for Amazon Business UK & Ireland, in the statement.
Financial institutions are worried that technology companies will steal their business, trade with the stronger brands of tech players and easy access to their products.
However, industry sources said that insurers or banks and technology companies are more likely to partner than to compete directly, given the difficulties and costs to outsiders when entering the highly regulated financial sector.
Amazon also offers warranty insurance and "buy now, pay later" services in the UK.