Amazon The Indian industry said Thursday that it had started offering auto insurance to cover two and four-wheelers in the country, marking the American giant's first foray into this category of financial services globally.
The e-commerce giant said it had signed an agreement with the Mumbai-based Acko General Insurance offer customers auto and motorcycle insurance. Amazon is also an investor in Acko.
Mahendra Nerurkar, CEO and director of Amazon Pay in India, told a Fintech conference on Wednesday evening that the company was planning to expand its insurance service to offer health, flight and taxi coverage.
Auto insurance is available to customers via Amazon Pay on the e-commerce giant's website and app. The company said that buying insurance will take less than two minutes and doesn't require paperwork.
"This along with services such as hassle-free complaints with zero paperwork, one-hour pickup, 3-day insurance claim support and 1-year repair warranty - in some cities, as well as an instant cash settlement option for complaints low value, making it beneficial for customers, "he added.
Customers who subscribed to Amazon Prime, the company's loyalty program that costs around $ 13 a year in India, will be able to access additional benefits and discounts, Amazon said without identifying them.
The Indian insurance market is the latest financial services sector that has attracted the attention of local and international tech giants. Paytm, India's most valued startup, and its CEO Vijay Shekhar Sharma, acquired insurance company Raheja QBE for an amount of $ 76 million earlier this month.
In India, only a fraction of the nation's 1.3 billion people currently have access to insurance and some analysts say that digital companies could prove crucial in bringing these services to the masses.
According to the rating agency ICRA, insurance products had reached less than 3% of the population in 2017. An average Indian earns around $ 2,100 per year, according to the World Bank. Of those Indians who bought an insurance product, they spent less than $ 50 in 2017, ICRA estimated.
"Our vision is to make Amazon Pay the most reliable, convenient and rewarding way to pay our customers. Delighted with this experience, there has been a growing demand for more services. In line with this need, we are excited to launch an affordable auto insurance product that is affordable, affordable, and provides a loss-free experience, "said Vikas Bansal, director and chief of financial services for Amazon Pay in India, in a statement. .
Although Amazon Pay is available in several markets, India's payment service offering remains unmatched. The company used the world's second largest Internet market, where it has invested over $ 6.5 billion so far, as a test case to explore various unique opportunities. The Amazon Pay app in India, for example, also sells movie and flight tickets.
