Amazon Pay eyes insurance as next big bet; enters market with car, bike policies

By: |
July 23, 2020 11:23 AM

Amazon Pay tied up with car and bike insurance startup Acko General Insurance to offer customers insurance “with no paperwork” along with “extra benefits including additional discounts,” for Prime members.

Amazon Prime Days Sale 2020 sale on 6 and 7 February 2020 will offer discounts on smartphones electronics toys kitchen productsThe under penetration of India’s insurance market has provided opportunities for e-commerce companies like Amazon and Flipkart to tap into it.

Digital payments arm of e-commerce company Amazon – Amazon Pay on Thursday announced entering into the insurance space with two and four-wheeler insurance policies. Amazon Pay tied up with car and bike insurance startup Acko General Insurance to offer customers insurance “with no paperwork” along with “extra benefits including additional discounts,” for Prime members, Amazon said. On the other hand, Walmart-owned Flipkart has already been active in the life and health insurance segments apart from two-wheeler and four-wheeler insurance.

“Amazon Pay is committed to the mission of enabling a Digital India by offering a trusted, convenient, and rewarding way to pay. We are focused on improving daily lives and excited to add more ways for customers to enjoy this experience,” Amit Agarwal, SVP and Country Manager, Amazon India tweeted.

Amazon Pay would offer “one-hour pick-up, three-day assured claim servicing, and one-year repair warranty – in select cities,” to consumers along with an option for instant cash settlements for low-value claims. One can also have add-ons including zero-depreciation, engine protection, etc. “Through this product, we aim to deliver a superior consumer experience right from purchase to claims by making it more affordable, accessible, and seamless,” said Varun Dua, CEO, Acko General Insurance.

Also read: Consumer Protection Act: Class action suit provision to keep e-commerce firms on toes for product defects

The under penetration of India’s insurance market has provided opportunities for e-commerce companies like Amazon and Flipkart to tap into it and leverage its existing base of vast customers. The general insurance penetration in India has been significantly low at 0.9 per cent at the end of FY 2009 in comparison to the global average of 2.8 per cent, as per the statistics portal Statista. A decade back, the penetration of general insurance segment stood at around 0.6 per cent during FY 2009.  The overall penetration of India’s insurance market stood at just 3.7 per cent in 2018. The penetration is referred to as the ratio of insurance premiums to the country’s GDP.

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