Aug 16, 2018

Amazon insurance talks push comparison sites lower

Shares in UK price comparison websites dropped on Wednesday after Amazon was revealed to be in talks with the insurance industry to establish its own such site. The online retail giant is in talks with insurers about establishing a UK price comparison website, Reuters reported. The talks are at an early stage, but the service would represent a fresh push into financial services in the region, where Amazon already offers branded Mastercard credit cards and extended warranties. Kamran Hossain, analyst at RBC Capital Markets, said Amazon could undercut other price comparison sites by charging insurers less for leads through its own service. "Typically insurers will pay £50 to £60 for a car insurance policy if someone takes it out via a price comparison website. They could pitch to insurers by charging, say, half of that," he said.

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