Amazon has announced the closure of its UK Insurance Store 15 months after its October 2022 launch.
In a surprising move, the tech giant attributed the decision to “prioritisation,” as it looks to redirect its focus towards core business areas, according to InsurTech Insights.
The closure marks a disappointing end to a highly-anticipated entry into the space.
Amazon’s foray into the insurance sector was met with a great buzz of enthusiasm years prior to their debut in the realm, however after only adding two more providers in the 15-month stint, the US firm slammed its doors on the operation.
Despite this, the company has claimed that the venture wasn’t without positives, as they look to extract all the lessons that can be learnt from the initiative.
Vassil Gedov, Head of the Amazon Insurance Store, shared a statement with Coverager, stating, “Over the last year, we have been evaluating various businesses and programs, and as a part of that, we’ve made the difficult decision to discontinue the Amazon Insurance Store.” He reassured customers that existing policies, ongoing claims, and future claims during the policy term would remain unaffected, and guidance would be provided on any necessary actions resulting from the change.
In 2023, Amazon decided to step up its presence in the AI landscape with a colossal investment of up to $4bn in the AI startup, Anthropic.
This move puts Amazon in direct competition with heavyweights like Microsoft, Meta, Google, and Nvidia, all vying for supremacy in what many deem the next pivotal technological arena, according to TechCrunch.
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