As we often see with massive corporations, it is relatively simple for them to venture into new industries as they grow the business even further. Interestingly, Amazon now offers car insurance, albeit only in India for now.
The new car insurance business is being run through Amazon Pay in partnership with a private company, Acko General Insurance. This cover will be offered to drivers of both cars and motorbikes, where Amazon Prime members will receive additional benefits like exclusive discounts.
This is another way for Amazon to make its yearly subscription service more appealing to current and prospective customers. It is a constant driver of Amazon’s business strategy – get as many people on your Prime platform through various other offers to convert them into regular online shopping spenders.
This was a major reason to launch Amazon Prime Video, a competitor to the likes of Netflix and Disney+. They have also launched “free” live TV in Germany for Prime members, and on their Twitch streaming platform Prime members have a free monthly subscription to their favourite streamer.
According to Amazon, customers will be able to purchase insurance in less than two minutes and with no paperwork. It will also offer paper-free claims, one-hour pick-up and three-day claim servicing. The monthly fees can be paid through Amazon Pay. While the service is only available in India for now, where Amazon Pay is popular, there is no reason they can’t offer this service elsewhere.
Commenting on the launch Vikas Bansal, Director & Head of Financial Services Amazon Pay India said “Our vision is to make Amazon Pay the most, trusted, convenient and rewarding way to pay for our customers. Delighted by this experience, there has been a growing demand for more services. In line with this need, we are excited to launch an auto insurance product that is affordable, convenient, and provides a seamless claims experience”.