Report: Amazon Could Tackle Claims Management Next
Amazon has become the go-to for online shopping, it’s foray into digital entertainment has been equally successful. Imagine if the online retailer were to offer insurance services. One company has – Altus Consulting, based in the UK – explored how the retail giant could disrupt the insurance industry.
The report, released earlier this year, revealed the Seattle-based firm was recruiting for a product manager position and it had attempted to poach some employees from Lemonade. Signs that Amazon is considering playing a bigger role in the industry.
More importantly, the report highlighted claims management as the biggest potential for disruption by the e-retailer.
According to Altus, “Amazon has a reputation as a leader in customer service; it is well placed to distribute new products to existing customers, and has the capability to manage a complex supply chain as part of an efficient operating model – these attributes could allow the company to gain a foothold in the UK home insurance market.”
Amazon could succeed in digitizing the claims process by allowing consumers to report claims via its website, through its app, via Alexa or another chatbot, or through smart home sensors.
Contents, an important aspect of a home insurance claim, may have been purchased through Amazon, providing a record for claims processing. According to the report, “The combination of access to the policyholder’s purchase history, data gathered through IoT devices, and automated photo and video analysis of property damage could form a powerful tool for claim assessment.”
In addition, the online retailer already offers a service to connect consumers to contractors.
Contents claims ready to be settled could be fulfilled by Amazon’s Marketplace and a cash settlement, the report outlined.
In summary, the Altus report stated, “Utilising elements of its existing technology and retail offerings would enable Amazon to make Claims Management part of its customer ecosystem, and provide a level of personalisation that sets it apart from the wider industry.”