Insurance industry may face new competition from Google and Amazon

Accenture insurance industry
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Google and Amazon may be looking to break into the insurance market

The insurance industry may be facing new competition in the next few years from some unexpected rivals. Google and Amazon are beginning to look into the insurance sector, seeing significant promise therein. Consumers throughout the world are beginning to trust large technology and commerce companies with various services. As this trust grows, these companies are beginning to find new ways to engage consumers and offer them products that are in high demand.

New competition in the insurance industry may be tough for traditional companies to handle

Both Amazon and Google are reportedly interested in entering the insurance industry. These companies have an interest in providing insurance to their customers. Amazon, in particular, has been looking into the concept of offering insurance to cover products that are purchased online and delivered either by humans or by drones. Google can provide insurance coverage in a wide range of sectors, but is most likely to offer some policies concerning technology, either for developers or for consumers.

Companies breaking into the industry may introduce new business models

Accenture insurance industryAccenture predicts that new companies that have not traditionally been involved in the insurance market entering the industry could cause some disruption. These companies would introduce new business models to the industry, which may be more attractive to consumers. These business models could pressure traditional insurers to find ways to adapt or risk being left behind by consumers purchasing coverage from their new competitors.

Success of new companies entering the market may be based on how expensive their coverage is

If Google and Amazon do enter into the insurance market, the price of the coverage that they offer will likely dictate whether or not consumers leave their current insurers for new options. Accenture suggests that new business models will likely introduce new ways for people to pay for insurance coverage or new policies that are less expensive than those being offered by traditional insurers. This could introduce more stress on insurance companies, some of whom have shown resistance to changes in the global market.

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