US e-commerce giant Amazon is rolling out its online insurance store for UK customer shopping for home property coverage.
According to a report from PYMNTS, Amazon has so far partnered with three third-party insurers, Ageas, Co-op and LV.
The company wants to streamline and reduce the length of questionnaires while maintaining high-level due diligence.The platform also offers a side-by-side comparison tool with a clear description of the different coverage levels each policy provides to save customer’s time.
Amazon announced the launch of the Amazon Insurance Store earlier this year.
To streamline the quote questionnaire, customers are asked only the essential questions required by insurers in order to receive a quote, Amazon said this simplifies the process.
The Amazon Insurance Store also provides a more transparent way to shop for home insurance. As more customers purchase policies, the store will populate customer reviews, star ratings, and claims acceptance rates so customers can make more informed purchasing decisions.
In an interview with PYMNTS, Vassil Gedov, general manager of financial services at Amazon EU, pointed to the lack of price comparison tools as one of the major pain points for consumers, not to mention the lengthy questionnaires they are subjected to that may include questions “not [even] necessary to get you a quote.”
Customers also don’t have insights into an insurer’s performance, he added, which means that they are unable to properly determine without reviews if their customer base is satisfied with the price charged and the service provided.
Lastly, in an age of instant gratification, the lack of a friction-free online and payment experience can deter customers from completing a purchase and cause high shopping cart abandonment at checkout.
“Once you’re ready and [have] selected a policy to purchase, you will often be redirected to another website, where you need to fill in your payment details again, which adds up to the time to purchase for consumers,” Gedov explained.
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