The World Insurance Report 2018 by Capgemini in collaboration with Efma has revealed that multinational companies that represent BigTech companies such as Amazon, Google, Facebook, Apple and Alibaba are moving towards establishing a presence in the insurance industry. Such large companies are seeking to leverage on the reputation for superior customer service. The data has revealed that globally nearly 30 percent customers would consider buying at least one insurance product from a BigTech firm. In 2015 the percentage of such customers was 17.5.
Millennials and tech-savvy segment of the population is more inclined to favor such moves from traditional insurers. Such customers had indicated lower positive experiences with traditional insurance companies and they are more likely to change their insurance provider within 12 months.
The report goes on to state that Amazon Protect introduced in the UK in 2016 offer protection against accidental damage, breakdown and theft of Amazon purchases ranging from washing machines to mobile phones to kitchen appliances and tablets. Amazon is also exploring the healthcare industry by collaborating with Berkshire Hathaway and JPMorgan to create a healthcare company to serve its employees in the United States.
Apple has also ventured into the industry by partnering with Cisco, Aon and Allianz on a cyber risk management solution to protect middle market and other enterprises from malware and ransomware.