Amazon considers move into UK financial services

null

Amazon is reportedly in talks with Europe's top insurance firms with the hope that they would contribute products to a UK price comparison website.

According to Reuters, industry executives held talks with the US e-commerce giant about the possible launch of a site.

However, at this time it is not clear as to what type of insurance Amazon would be selling but home and motor policies are quite popular sellers on other UK price comparison sites. The company's advanced technology, large reach and loyal customer base could help it take on existing UK sites.

Currently comparethemarket.com, which lists products from AXA, Hastings and eSure, and GoCompare which lists insurance from Santander and LV are the two largest price comparison sites in the UK.

By launching a UK insurance site, Amazon would build on its existing Amazon Protect service that offers extensions to manufacturers' warranties.

Insurers may be willing to give up some of their premiums to the e-commerce company in an effort to expand sales while others may be turned off by the fact that premiums could be lowered as a result of increased competition.

Amazon's rival, Google launched its own financial comparisons site in the UK and US back in 2016 but the site was shut down due to low traffic after only a year.

Talks with insurance companies are just the first stage and we will likely learn more if Amazon does decided to go through with launching its own UK price comparison site.

Image Credit: Ken Wolter / Shutterstock