Amazon India plans to disrupt conventional insurance industry; Here's how

Just like a regular corporate agent, Amazon India reportedly aims to carry out business of soliciting, procuring and serving insurances.

Amazon India is now planning to foray into insurance industry and start selling life health and general insurance. (Image: PTI)

Bengaluru: With an aim to strengthen its financial services offering in the country, Amazon India is now planning to foray into insurance industry and start selling life health and general insurance, according to its filings with the Registrar of Companies. Just like a regular corporate agent, world largest online retailer reportedly aims to carry out business of soliciting, procuring and serving insurances. Company’s digital-payments arm, known as Amazon Pay, will reportedly roll out the specific products, along with other financial products like loans and EMI services. Entry of online retailers in insurance segment is not a new trend in India as Walmart-back eCommerce giant Flipkart has already sought approval from the regulator to sell general and life insurance covers in India. Even Alibaba-back mobile wallet turned eCommerce major Paytm has a corporate agency to sell insurance covers. With all major eCommerce giants jumping into the online insurance landscape, roads for Amazon will surely not be so easy. While, the Seattle-based tech giant has filed with the regulator, it is yet to seek an approval from Insurance Regulatory and Development Authority. According to a combined ASSOCHAM-APAS report, Indian insurance industry is expected to touch $280 billion by 2020 and Amazon’s entry in the segment is considered as a logical move by experts as it aims to expand its financial services sector. Speaking to news agency Bloomberg, Yashish Dahiya, co-founder and chief executive officer of insurance aggregator PolicyBazaar said, “It’s good that some of the large technology players with capital are looking to enter," adding that would popularise insurance and help the industry turn digital much faster. Earlier in February this year, Fintech major Paytm rolled out two insurance companies - Paytm Life Insurance Corporation Ltd and Paytm General Insurance Corporation Ltd. Both entities were launched with a share capital of Rs 1,000,000 each, with founder Vijay Shekhar Sharma and parent company One 97 Communications holding majority shares.