Amazon, Google, Facebook insurance product consumer interest – Digital Insurance

More than half, 55%, of consumers would be interested in buying a hypothetical insurance product from Amazon, that used data analytics to determine policy pricing, over a legacy carrier, according to an online survey from Breeze, an insurtech.

Some respondents also reported they would be interested in buying insurance products from such companies as Google, 46%, and Facebook or Meta, 38%. The survey was commissioned by Breeze and conducted by Pollfish online in January. It includes responses from 1,500 adults.

“Of the three tech behemoths, Amazon is the most trusted by consumers to offer insurance products,” according to a blog post from Breeze on the survey results. “Perhaps because Amazon has forayed into health insurance before; it launched the since-shut down Haven in 2018 and more recently launched Amazon Care. Moreover, Amazon has explored other financial services – like checking accounts – so there is some consumer familiarity when it comes to Amazon and personal finance.”

Consumers were also asked other specific questions related to buying auto insurance and renters or homeowners insurance from specific companies in those various industries like Tesla, Ford, CVS and Zillow.

Sixty-six percent of respondents were interested in buying auto insurance from car manufacturers like Tesla, Ford, or Honda that used data analytics to determine policy pricing instead of from a traditional carrier. Only 34% reported they would not.

Survey respondents seemed most interested in buying auto insurance from Tesla, which is already a possibility for some. Tesla launched its usage-based insurance product in Texas and Illinois last year, with plans to expand. The products are only available to Tesla vehicles. The company initially launched its auto insurance product in California in 2019.

Additional findings to note include the following:

Respondents were also interested in buying renters or homeowners insurance from real estate companies like Zillow or Trulia, 61% said they would be interested and 39% said they would not.A little over half, 51%, of respondents, said they would be interested in buying disability insurance from an HR or payroll company like Zenefits or Intuit Quickbooks and 49% said they would not.Respondents were also intrigued by the idea of buying health or life insurance products from companies like CVS or Walgreens, 59% said they would be interested and 41% said they would not.

“Driven by insurtechs, insurance is moving towards efficiency driven by technology, data and predictive analytics. It’s getting away from the legacy operations defined by human underwriters, nine-to-five dealmaking and cumbersome processes. A computer only needs a couple of minutes to underwrite an insurance policy,” according to the blog post from Breeze. “It’s an opportune time for tech companies to get a seat at the insurance table. They have robust data and technological infrastructure that could be leveraged to underwrite and sell insurance products.”