Survey: Customers show favorable attitudes to Amazon, Google for homeowners insurance
In early 2016, when online behemoth Google shuttered their insurance venture Google Compare after only a year in business, many within our industry breathed a sigh of relief. But large national players see a potential for disruption, and this time, the target may be the homeowners insurance market rather than the auto market.
An August 2018 J.D. Power Pulse Survey of 650 U.S. consumers showed that insurance buyers view large national players like Amazon and Google favorably when it comes to insurance, at least for their home. In Insurance Thought Leadership, Tom Super, director in the property and casualty insurance practice at J.D. Power, discusses the survey results: Does Amazon Threaten Home Insurers?
The survey showed that 20% of consumers would use Amazon or Google for home insurance. When you separate out millennials, the numbers are even higher: 33% for Amazon and 23% for Google.
Part of the interest stems from consumer interest in smart home technology and devices to run their home: 75% of consumers expressed an interest in telematics. Homeowners are interested in getting discounts for home maintenance and security. 46% of consumers would allow insurers access to sensor technology in their appliances to help prevent loss.
The interest is strong in some buyer segments: 34% of consumers would likely switch to a home insurance company that offered smart home technology loss and protection options; 57% of millennials would likely switch; 40% of consumers who currently have "smart" tech in their home would be likely to switch (64% of consumers reported having some sort of smart tech in their home, such as a smart thermostat, doorbell, etc.)
In another, related news item, Claims Journal reports that Amazon Could Tackle Claims Management Next. A report issued earlier this year explored potential disruption in insurance and how the retail giant thinks it could gain a foothold in the homeowners insurance market:
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."