Getting Your Home Insured Through Google Or Amazon
What if the same corporations that helped you navigate the Internet and find the best deal on a new iPad also sold home insurance? While this isnt possible just yet, it might be possible in the near future. According to a recent survey from Accenture, two thirds (67 percent) of insurance customers would consider buying insurance from products or organizations other than insurers. This number included 23 percent of people who would consider buying insurance from a company like Google or Amazon
While this information doesnt amount to much at this moment, it could change the landscape of the insurance business
drastically in the future. Higher competition could mean lower rates, or it could mean a cross-company stalemate and higher payments.
SEE ALSO: 3 Ways You Should Investigate Your Insurance Company
According to Accenture, of the 6,000 insurance customers from 11 countries:
- 43 percent of respondents (2580 people) would consider buying insurance from banks
- 23 percent (1380 people) would consider buying from online service providers
- 20 percent (1200 people) would consider buying from home service providers (like telecommunication specialists or home security companies)
- 14 percent (840 people) would consider buying from retailers
- 12 percent (720 people) would consider buying from car dealers
This means that anyone from JP Morgan Chase to Google to ADT might be insuring you in the future. These big hitters could really shift the home insurance industryand they could do it soon. Michael Lyman, global managing director for management consulting in Accentures insurance sector stated in an interview thatup to $400 billion in insurance premiums could change hands in the next 12 months
. Most likely, this competitiveness will mean lower home insurance rates and more coverage.
But the USA is not the target audience for these shifts. Our customer base is too loyal for a trial run. The first areas these companies are looking at are China and Brazil, where the home insurance loyalty rates are low
. In China, 81 percent of participants said that they were likely to switch home or auto insurance companies in the next 12 months, while 75 percent of Brazilians answered the same way. These markets are going to be the target markets of new home insurance companies because they will be more willing to switch to more affordable and newer companies.
SEE ALSO: GEICO Becomes A Competitor for Home Insurance
So, if were not the target audience of these new companies, whats in it for us? The threat of these new insurance providers will most likely force current home insurance providers to become more competitive
. Theyll either have to offer better products or offer their current products at a lower rate. When these companies eventually do expand to the US, the home insurance market will be even more competitive.